Zhang Li, CFA, supervises individuals working on the bond trading desk at a large investment management firm. Zhang Li has discovered that Liu Mo, a bond trader under his supervisory has been accepting lavish gifts from one of the firm's brokers. Zhang Li has also noticed that Liu Mo has been executing more than the usual amount of trades through this particular broker, and she suspects that he has not been receiving best execution for the firm's clients. Zhang Li immediately initiates an investigation to determine the extent of Liu Mo's wrongdoing. According to the Standards of Practice Handbook, pending the outcome of this investigation, Zhang Li's best course of action is to:

A.Warn the employee to cease such activity.

B.Report the misconduct up the chain of command.

C.Take steps to ensure the violations will not be repeated.