CATHERINE Brenner has resigned as chair of financial services giant AMP, effective immediately, to be replaced by Mike Wilkins who will be interim executive chairman.

Brenner is AMP’s second high-profile casualty of the banking royal commission, after chief executive Craig Meller resigned over the fees-for-no-service scandal.

The company has been under intense pressure following evidence presented to the banking royal commission over the past two weeks.

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

Prime Minister Malcolm Turnbull welcomed Ms Brenner’s decision to step down, saying “there’s clearly matters of great concern” at AMP.

“I just want to make it very, very clear, my commitment and the government’s commitment is to ensure that the wrongdoing that we have seen does not happen again and we make sure that it can’t happen again,” he told reporters in Sydney.

Mr Turnbull declined to comment on other executives but said every institution’s board of directors ultimately had to take responsibility for what had gone on in their company.

In a statement today, AMP announced that Group General Counsel and Company Secretary Brian Salter will also leave the company.

Ms Brenner said she was “deeply disappointed” by the issues raised at the royal commission and the impact it has had on customers, employees, advisers and shareholders.

“As chairman, I am accountable for governance,” Ms Brenner said.

“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.” Nonetheless, AMP said Ms Brenner, Mr Meller and the other directors had done nothing wrong with regard to an external report it commissioned — and then repeatedly reviewed — into the fee-for-no-advice scandal.

AMP has been under siege since it was revealed the wealth management giant allegedly committed crimes by lying to the corporate regulator over the scandal in which it charged customers for fees they never received.

Brenner had been under extreme pressure to resign her role as chair, which came with a salary of $660,000.

AMP announced that in recognition of “collective governance accountability” the company’s board would reduce the fees for all directors by 25 per cent for the remainder of 2018.

“The employment and remuneration consequences for the individuals within the business responsible for the fee-for-no service issue will be determined on finalisation of an ongoing external employment review, which is expected to complete shortly,” the company said in the statement.

Brenner’s decision to quit followed crisis talks at AMP over the weekend.

Last week, Mr Meller apologised “unreservedly” for AMP’s conduct uncovered at the banking inquiry.

He said he was “personally devastated” and insisted he had not known 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.

“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 plummeted since the disturbing revelations were made on Wednesday.

The company faces possible criminal charges after the financial services royal commission heard it charged clients fees for services they didn’t receive, and misled the Australian Securities and Investments Commission about the practice.

ASIC said it is continuing to investigate AMP’s conduct in relation to fees for no service, and has received many thousands of documents and undertaken 18 examinations of AMP staff.

“Making false or misleading statements to ASIC can result in civil and criminal sanctions,” the watchdog said in a statement.

The royal commission has heard AMP 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 presented an independent report to ASIC last year as a follow up to the activity, but only after it went through 25 draft versions and a series of changes from senior executives and the board.

AMP issued a statement apologising “unreservedly” to customers, the regulator and the broader community.

“AMP is deeply disappointed that its advice business has charged customers fees where service has not been provided and for misleading the regulator in this regard,” the company said.

University of Sydney Associate Professor in marketing, Margaret Matanda, said AMP’s brand had been badly tarnished.

“This is going to be extremely damaging to AMP’s reputation and their brand image,” Ms Matanda told AAP.

“We thought this was an iconic brand and we saw it as something that was very authentic, but now we are having these doubts about its brand image and are seeing that it is not a very ethical brand.”

She said AMP will need to restore trust by talking openly to the public and reinforcing its ethics.

“It could be too early to do that, but as time moves on we tend to forgive these brands and trust them again,” Ms Matanda said.

“But it is going to take time.”

AMP and the nation’s big four banks have paid almost $219 million in compensation to more than 310,000 financial advice customers charged fees for no service.