An agent at a Chicago-based broker-dealer is compensated solely by commissions. The agent recommends frequent trades to a moderately active client who relies on the agent's advice. Which is the Administrator's MOST LIKELY response under the USA?

1. ATake no action, as commission-based compensation is standard industry practice
2. BInitiate an investigation for possible churning or excessive trading✓ Correct answer
3. CRevoke the firm's broker-dealer registration
4. DRequire the agent to switch all clients to fee-based compensation

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