Large ASX blue chips could be fined billions of dollars

The ASX’s largest blue chips face the possibility of huge fines with Labor planning to increase the potential penalties that businesses can receive for civil offences, according to the AFR.

Labor has suggested that it would get rid of the $210 million limit for corporate civil offices. Instead, Labor is suggesting that businesses that break the law could face a maximum fine of up to 10% of revenue.

That would mean that some of the biggest companies could face the biggest fines. Businesses like Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), Telstra Corporation Ltd (ASX: TLS) and Westpac Banking Corp (ASX: WBC) could all theoretically face multi-billion-dollar fines.

For those investors thinking large fines would be unlikely, you just have to consider that Commonwealth Bank of Australia (ASX: CBA) has already been fined $700 million by AUSTRAC.

Labor was the party to insist on the Royal Commission and it is seen as more combative to big business compared to the Liberal Party.

It’s up to each voter to decide if this is the right thing to do or not, but it’s certainly something that investors need to be wary of.

The largest businesses make the best political targets. They’re the ones that most of the public use and make the biggest profits, even if they don’t have the biggest profit margins or the highest market share out of all ASX shares.

It’s one of the main reasons why I’m avoiding buying other shares that are in the political spotlight like AGL Energy Ltd (ASX: AGL) and Estia Health Ltd (ASX: EHE). I think there are better investment opportunities out there compared to the ASX 20 shares.

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked…

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of The Motley Fool’s Top 3 Blue Chip Stocks for 2019.

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in a specially prepared FREE report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

See the 3 blue chip stocks

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited and Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.