The CEO of AMP, Craig Meller, has resigned in the wake of his company's damning evidence given at the banking royal commission.

AMP will also appoint an independent expert to review its regulatory reporting and governance systems.

The surprise resignation come after the wealth management company was found at the royal commission to have misled ASIC on numerous occasions and to have charged clients for services they did not receive.

AMP has not been the sole target this week.

The commission revealed that Westpac gave very poor financial advice to its clients, and charged them high fees for insurance they did not need.

The Commonwealth Bank was found to have charged fees to dead customers.

Meller announced his retirement a few weeks ago, but has brought his departure forward and will not receive his bonus.

Scott Morrison said yesterday that penalties for corporate misconduct will be boosted, and will include fines of up to $210 million and even jail sentences.

The government has been under fire for initially opposing the royal commission.

Click here to read Scott Morrison's statement on boosting penalties for financial misconduct.

Read more about the banking royal commission:

Australia could face 'credit crunch' if banks significantly tighten lending standards: UBS

What will the banking Royal Commission mean for real estate?

Agent selection service commissions should be transparent: REIA banking royal commission submission