AMP chief executive Craig Meller has quit the wealth management giant, becoming the first major casualty of the financial services royal commission.
Mr Meller says he is "personally devastated" after AMP admitted to charging clients for advice they never received and then lying to the corporate watchdog about it.
AMP CEO Craig Meller has resigned amid scandals uncovered at the royal commission into banking. (AAP)
AAP
Mr Meller, who had been set to retire at the end of the year, insisted he did not know about the behaviour but acknowledged that he was ultimately responsible.
"I do not condone them or the misleading statements made to ASIC," Mr Meller said in a statement on Friday.
"However, as they occurred during my tenure as CEO, I believe that stepping down as CEO is an appropriate measure to begin the work that needs to be done to restore public and regulatory trust in AMP."
Former IAG chief executive Mike Wilkins, who joined AMP's board in 2016, will replace Mr Meller on an interim basis.
AMP shares have been in freefall since the company began giving testimony to the royal commission on Monday, wiping about $1.3 billion off its market capitalisation.
AMP faces possible criminal charges after the royal commission heard it deliberately and unlawfully continued charging fees to "orphan" clients for three months despite them not receiving advice services.
AMP group executive for advice Jack Regan admitted that one letter to ASIC claimed clients were at fault for being charged ongoing fees, when in some cases it was the result of a conscious effort by AMP.
The company on Friday said it will make a submission to the royal commission over the issues raised.
Finance minister Mathias Cormann said the resignation was an "obvious consequence" of the commission's work.
The Turnbull government spent years resisting calls from Labor and the Greens to hold a Royal Commission into the banks, but finally called one late year after Nationals backbenchers threatened to side with the opposition.
"Obviously some of the news that has emerged in the Royal Commission is very concerning indeed and this is obviously one of the consequences out of that process," Senator Cormann told Sky News on Friday.
