The corporate watchdog has given AMP a reprieve, ruling out criminal action against the wealth manager over one of the biggest scandals uncovered at the banking royal commission.

The Australian Securities and Investments Commission (ASIC) on Friday said it had finalised a long-running investigation into “fees for no service” misconduct – where AMP clients were charged for financial advice that was never provided.

The scandal involved an arrangement known as the buyer of last resort or “BOLR” scheme, under which AMP would buy the practices of retiring financial planners if no other buyers could be found.

In one of the most damaging revelations of the 2018 banking royal commission, it was revealed clients of these retiring advisers were placed into a pool and charged fees without receiving advice.

ASIC has been investigating suspected criminal conduct after a referral from the royal commission, and had submitted two briefs of evidence to the Commonwealth Director of Public Prosecutions (CDPP) last year. It said on Friday it had ended its investigation after consulting with the CDPP.

“The CDPP has now determined, on the basis of the available evidence and weighing the relevant public interest factors, that no charges should be brought for that conduct,” ASIC said.

AMP, which was thrown into crisis by the royal commission, welcomed the announcement on Friday.

AMP’s general counsel David Cullen pointed to improvements made by the wealth manager to prevent fees being charged in this way again, and said AMP was pleased to have closure on the matter.

“AMP acknowledges the deficiencies in its historic systems and processes within the advice business to monitor ongoing service fees in relation to BOLR,” Mr Cullen said.