Former Bank of Bermuda chief executive officer Henry Smith is stepping down from the asset management firm he now heads for health reasons, the company said, citing post-operative complications following a surgery early last year.

Mr. Smith, 57, who was CEO of the Bank of Bermuda until its sale in early 2004 to HSBC Plc joined W.P. Stewart & Co. Ltd., a Bermuda-based global asset management firm, a year ago. He will remain on the company?s board as deputy chairman. His resignation as chief executive takes effect at the end of the month.

The company?s current deputy chairman, John C. Russell, will become interim chief executive, and will become an executive member of the board.

In a press statement, the asset management firm said Mr. Smith had major surgery about a year ago resulting in post-operative complications that make it difficult for him to meet the demands imposed by the full-time role of president and CEO.

Mr. Smith had spent his entire career at the Bank of Bermuda, before joining W.P. Stewart.

The firm?s board has set up a special committee to conduct a search for a full-time replacement, with plans to fill the position within the next few months.

W.P. Stewart?s has been providing research equity management services to clients throughout the world since 1975.

It is a publicly traded company, listed on the New York Stock Exchange and Bermuda Stock Exchange.