AMP chairman Catherine Brenner has resigned following damning evidence at the banking royal commission of misconduct by the company's staff.

In a statement, the financial services company said directors will take a 25 per cent pay cut for the remainder of 2018 as a result of the issues raised at the commission.

It is still considering "employment and remuneration consequences" for those staff directly involved in charging fees for no services.

Recently appointed interim chief executive Mike Wilkins has now also been appointed as interim executive chair of the financial services company, effective immediately.

Brian Salter, the group general counsel and company secretary, will also be leaving AMP, the company also said in a statement.

Mr Salter will not receive his "deferred remuneration" (bonuses and incentives) "as a result of the board exercising its discretion".

The banking royal commission heard on Friday that AMP could face criminal penalties for misleading the corporate regulator.

Sorry, this video has expired Counsel assisting recommends criminal charges for AMP over Clayton Utz report

"Through AMP's dealings with ASIC regarding the extent and nature of its fee-for-no-service conduct, AMP adopted an attitude toward the regulator that was not forthright or honest, and demonstrated a deliberate attempt to mislead," counsel assisting the inquiry Rowena Orr, QC, said.

AMP was the first institution to be questioned by the commission over the fee-for-no-service scandal, which also involved the four major banks.

During questioning, AMP's group executive for advice, Anthony "Jack" Regan, admitted to the commission that the company had misled ASIC by presenting fee-for-no-service as a mistake, when there was a deliberate policy to charge customers fees for 90 days even when they were in a pool that received no advice services.

It also emerged during questioning that the company's board ordered changes to an "independent review" of the fee-for-no-service scandal being performed by law firm Clayton Utz, and that those changes were made.

Sorry, this video has expired Jack Regan loses count of how many misleading statements were made to ASIC

'I have not engaged in any wrongdoing', says Salter

In the statement announcing the chairman's resignation, AMP said the company's board was "satisfied" that Ms Brenner and former chief executive Craig Meller, who resigned earlier this month, "did not act inappropriately in relation to the preparation of the Clayton Utz report".

"[The board] were unaware of and disappointed about the number of drafts and the extent of the group general counsel's interaction with Clayton Utz during the preparation of the report," the statement said.

"The board commissioned and received the report. It was not a matter for the board's approval."

This afternoon, Brian Salter said he found out AMP had ended his employment through the company's statement to the ASX.

"I accept without reservation that AMP must take immediate steps to restore confidence and respect of and re-earn the trust from all its stakeholders," he said in a statement.

"This requires not only refreshment of the board with suitably qualified directors but also changes in the senior executive team. My departure is a necessary part of this process."

Mr Salter defended his conduct in liaising with Clayton Utz on the report, saying AMP was entitled to "work with" the law firm.

"I have not engaged in any wrongdoing," he said.

"Clayton Utz has stated publicly that its report and its independence were not compromised.

"Clayton Utz has also stated publicly that its terms of reference were clear and required it to prepare a report independent of management of the AMP Advice business being reviewed and under the instruction of the AMP board and its group legal counsel."

AMP said it will be making a formal submission in response to the allegations of potential breaches of the Corporations and ASIC Acts raised by senior counsel assisting Ms Orr during her closing submission to the royal commission's financial advice hearings on Friday.

Resignation may not head off shareholder revolt

Ms Brenner has fallen on her sword ahead of AMP's annual general meeting on May 10, which could be subject to a shareholder protest vote.

In announcing her decision to stand aside, Ms Brenner said she hoped it would address shareholder and customer concerns.

"I am accountable for governance. I have always sought to act in the best interests of the company and have been in discussions with the board about the most appropriate course of action, including my resignation," she said in a statement.

"The board has now accepted my resignation as chairman as a step towards restoring the trust and confidence in AMP."

Sorry, this video has expired More heads could roll at AMP's AGM next week

Prime Minister Malcolm Turnbull has told reporters that Ms Brenner did the right thing by resigning.

"Those who have done the wrong thing should be held to account," he said.

"I'm not going to do a running commentary on particular executives at particular times, but every institution and every board of directors — which is ultimately the body that governs these institutions, the peak of their management structure — they have got to take responsibility for what has gone on and make the appropriate steps and … in some cases that has involved people stepping down or retiring or resigning."

Deputy Opposition Leader Tanya Plibersek also supported the resignation, but cautioned against a few symbolic scalps being seen as a fix for problems in the financial services sector.

"While it is important to follow up individual instances of poor behaviour or illegal behaviour, it's important that people face the full force of the law if they've done something illegal or face their shareholders if they've done something unprincipled or unethical," she said.

"I think we need to wait and have a look at what the royal commission throws up in terms of systemic reforms.

"I think it's wrong to just treat this as a series of bad apples and think that the response that is needed is just one or two people to fall on their swords."

First Super holds shares in AMP and its chief executive Bill Watson has called for the company's whole board to resign.

"We don't think that the current board has covered itself in glory and we need a new board to take the company forward and restore faith, rebuild shareholder value and compensate customers who have been treated very poorly," he told RN Breakfast.

"What we saw last week is counsel assisting the commission recommended that charges could be laid.

"What's not understood is that this could put AMP's financial services licence in peril; they don't have a financial services licence, they don't have a business."

AMP's market value has fallen by more than 20 per cent this year, notably during the recent revelations aired at the Royal Commission.