Understanding Priorities: Ethical Obligations in Potential Insider Trading Situations

As a charterholder, John is aware of his obligation to understand not only the CFA Institute Code of Ethics and Standards of Professional Conduct but also the laws that govern the investment advice he provides. During a client meeting, he discovers that one of the clients, an influential politician, is involved in a potential illegal insider trading scheme. John is unsure about how to address the situation without compromising his professional integrity or legal obligations. Given his understanding of the CFA Institute's Code and Standards, what should John prioritize in this situation?