The head of the organisation that represents Scotland's financial services sector has been forced to resign barely a month after taking up the post.

Andrew Silverman, 43, has stepped down as the chief executive of Scottish Financial Enterprise (SFE) because of "unforeseen ill health".

Silverman had only taken over from his predecessor, Amanda Harvie, on July 1. Gordon Arthur, an SFE board member and former director of corporate affairs at Standard Life, will take over as interim chief executive until a successor is appointed.

John Campbell, the SFE chairman, said: "The board is disappointed with this turn of events but is committed to appointing a new chief executive of the highest calibre at the earliest opportunity. I believe the interim arrangement will ensure SFE's momentum is maintained."

Silverman was private secretary to Peter Mandelson when the latter was minister without portfolio between 1997 and 1998, then worked in Downing Street's strategic communication unit. Before moving to the SFE, he was the corporate communications and public affairs director of the Association of Chartered Certified Accountants.

Details of Silverman's illness have not been revealed, but it is understood it did not come to light until after he had become the SFE chief executive. Jim Mather, Enterprise Minister, said: "It is unfortunate Andrew Silverman had to stand down but I wish him well for the future.

"I look forward to working with his successor in achieving this government's aim of sustainable economic growth."

The SFE is an independent organisation and its members account for more than 70% of employees within Scotland's financial services industry.