Final answer:
The individual operating as a broker or agent without proper licensing is subject to financial penalties that can exceed the amount of compensation they received. Legal frameworks regulate and supervise the sale of securities, and they include strict rules for lobbyist activities, including limitations post-tenure for lawmakers.
Step-by-step explanation:
When a person engages in brokerage or sales activities without a proper license or certificate of registration, they are operating outside the regulatory and supervisory framework designed to protect the integrity of markets and individuals. This oversight typically regulates and supervises the sale of securities and the various professionals involved in those transactions. If a person illegally receives a commission or any other consideration without being licensed, they are liable to any aggrieved person for a penalty. The penalty can range from not less than the actual amount received to up to three times that amount.
Such regulations are part of broader laws that address the conduct of lobbyists and government officials, with a focus on maintaining transparency and preventing corruption in governmental and financial processes. Violations of lobbyist registration and conduct can result in serious consequences. These regulations also often detail the activities that are prohibited, such as improper gift giving, with violators facing hefty fines and potential imprisonment.
It is important noting that the laws also set rules for how those who have served as lawmakers can interact with government post-tenure. For example, revolving door laws mandate waiting periods before former senators, representatives, and cabinet secretaries can register as lobbyists. This aims to prevent conflicts of interest and the leveraging of governmental relationships for personal gain.