The offshore financial centre of Guernsey has been rocked by news that its chief minister, Peter Harwood, has resigned from his role, media reports said yesterday.

The offshore financial centre of Guernsey has been rocked by news that its chief minister, Peter Harwood, has resigned from his role, media reports said yesterday.

His resignation comes after national media reports about his previous role as a director of the Channel Islands Stock Exchange. The Guernsey Financial Services Commission is investigating regulation of the exchange.

Harwood is reported by the British Broadcasting Corporation to have said that the ongoing investigation would "focus unnecessary media attention" on his position. He said that it would be to the "detriment of the reputation of that office" and "seriously detract from the vital ongoing work of the Policy Council and its sub-committees".

Deputy chief minister Jonathan Le Tocq said the Policy Council of the island respected his decision. Harwood has held the post for the past two years; an election to replace him will probably be held in March.

Deputy Le Tocq said: "This [resignation] certainly wasn't a knee-jerk reaction... it had been discussed between him and Policy Council ministers for some time.

"There is still an investigation ongoing... that's well known [by] the public I think, but that might continue for some time.

"I have no reasons to believe at all that Deputy Harwood has done any wrongdoing at all,” Le Tocq is quoted as saying.