Hiroshi Kato, CFA, is a supervisor at an investment management firm. Kato learns one of his employees may have violated the Standards. Kato promptly initiates an investigation to determine the extent of the potential wrongdoing and concludes that the employee violated the Standards. Kato then reports the misconduct up the chain of command and warns the employee to cease the activity. While waiting for the outcome of the investigation, Kato takes no further steps to prevent repeated violations.

Are Kato's actions consistent with the Standard relating to responsibilities of supervisors?