AMP CEO quits after scandals exposed

AMP chief executive Craig Meller has become the first major casualty of the financial services royal commission, quitting after revelations the wealth management giant charged clients for advice they never received and then lied to regulators about it.

Mr Meller had been set to retire at the end of the year but brought forward his departure and saw the offer of a bonus withdrawn at the end of a week in which AMP was publicly mauled over the fee-for-no-service scandal.

Mr Meller, who had led the 169-year-old firm since 2014, said he was "personally devastated" after learning of behaviour that may yet result in staff facing criminal charges.

"I do not condone them or the misleading statements made to ASIC," Mr Meller said 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."

Treasurer Scott Morrison said a change of chief executive would not be enough to address failings uncovered by the commission.

"Let's not forget, it's not just chief executives here," the Treasurer told reporters in Melbourne.

"The boards of these organisations are the custodians, really, of the governance, and I am sure that that will have plenty of attention as the commission carries on its important work."

Mr Morrison was speaking as the federal government, which reluctantly called the commission after opposing it for years, announced tougher penalties for shonky bankers and corporate criminals.

The wealth management giant faces possible criminal charges after the commission heard it deliberately and unlawfully continued charging fees to "orphan" clients for months despite them not receiving advice services.

AMP and the nation's big four banks have already paid almost $219 million in compensation to more than 310,000 customers who did not receive advice for which they had paid.

AMP on Friday said it was withdrawing a proposed equity bonus for Mr Meller, which had been due for ratification at the firm's AGM, and that former IAG chief executive Mike Wilkins will step in as interim CEO.

Mr Meller had already announced his retirement after presiding over wealth protection and life insurance writedowns that in 2016 led to its worst full-year result in 13 years.

AMP shares also declined over his tenure and have slumped further since the company began giving testimony to the royal commission on Monday, cutting more than $1.3 billion off the firm's market capitalisation this week.

Bell Direct equities analyst Julia Lee forecast more board and executive changes in coming weeks, and expects further compliance costs and advisor losses.

She said the share price decline could have been worse had it not been for bargain hunters.

"I think the realisation that this is going to be a long and painful path probably means that there are few buyers of the stock even at these levels," Ms Lee told AAP.

AMP shares were three cents, or 0.7 per cent, lower at $4.29 by 1300 AEST.