Barclays CEO Jes Staley has resigned amid a UK inquiry into his ties with convicted sex offender Jeffrey Epstein, bringing to a close a controversial six-year reign characterized by his backing of the group's investment bank against an activist investor.

Staley will be replaced by the bank's head of global markets C.S. Venkatakrishnan, who on Monday pledged to continue his predecessor's strategy.

Barclays said it was made aware on Friday of the preliminary conclusions from the Financial Conduct Authority and the Prudential Regulatory Authority's investigation into how Staley represented his relationship with Epstein to the bank and the subsequent description of that relationship in Barclays' response to the regulator.

"In view of those conclusions, and Mr. Staley's intention to contest them, the Board and Mr. Staley have agreed that he will step down from his role as Group Chief Executive and as a director of Barclays," the bank said.

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"It should be noted that the investigation makes no findings that Mr. Staley saw, or was aware of, any of Mr. Epstein's alleged crimes, which was the central question underpinning Barclays' support for Mr. Staley following the arrest of Mr. Epstein in the summer of 2019."

Barclays shares dropped 2 percent after the announcement.

Barclays announced last year that UK financial regulators were looking into links between Staley and Epstein, who killed himself while he was waiting to be tried on sex trafficking offences. Staley had said previously his relationship with Epstein, which he now regrets, ended in late 2015.

The FCA and PRA said they were unable to comment further on the investigation.

Staley reportedly informed staff in an internal memo that he did not want his "personal response" to the investigations to become a distraction.

"Although I will not be with you for the next chapter of Barclays' story, know that I will be cheering your success from the sidelines," he said.

In another internal memo, Venkatakrishnan, known as Venkat, told staff Staley's strategy at Barclays was the "right one". However, he said changes would be announced on the bank's organization in the coming days.

Regulators started the investigation into Staley's alleged links to Epstein after JPMorgan gave them email exchanges between the two men sent during Staley's time as the head of JPMorgan's private bank, the Financial Times reported last year.

The bank's share price has fallen 9 percent since Staley became CEO in December 2015.

Barclays successfully fought off a campaign led by activist investor Edward Bramson in 2018 to remove Staley from the position. Bramson sold his stake earlier this year.

Barclays and Britain's financial regulators fined Staley a combined $1.5 million in 2018 after he attempted to identify a whistleblower who sent letters criticizing one of the bank's employees.