IAmNeil

Re #1. I personally thought resigning was going to be unnecessary; however, it is indeed B.
Page 18 of the Schweser Book 1:
Members should dissociate, or separate themselves, from any ongoing client or employee activity that is illegal or unethical, even if it involves leaving an employer (an extreme case). While a member may confront the involved individual first, he must approach his supervisor or compliance department. Inaction with continued association may be construed as knowing participation.