The banking royal commission has recommended AMP be prosecuted for misleading the corporate regulator.

Senior counsel assisting the commission Rowena Orr, QC, said AMP breached criminal provisions for misleading the Australian Securities and Investments Commission (ASIC) by charging for services it did not provide.

Ms Orr said AMP made a decision to deliberately charge customers for service that “it knew it could not and would not provide”.

Ms Orr said AMP executive Jack Regan admitted it “was both unlawful and ethically and morally wrong”.

AMP was also recommended for criminal charges for presenting ASIC with a report by law firm Clayton Utz as independent, despite making up to 25 changes before it was released.

The charges were recommended under 1308 (2) and 1308 (3) of the Corporations Act which deals with misleading statements to ASIC.

Ms Orr said AMP should also be charged for breaching Section 64 of the ASIC Act, which is a criminal breach.

Treasurer Scott Morrison has earlier suggested AMP and its executives be recommended for criminal charges.

Companies can be fined as much as $1 million for each material breach of 1308 (4) and 1308 (5).