Imro said Lloyds had failed to act with due skill, care and diligence in 10 separate respects for five years between November 1993 and November 1998.
The bank also overcharged its unit trusts, failed to organise its internal affairs responsibly, failed to prevent clients going into overdraft, and failed to pay interest to customers.
The regulator listed multiple rule breaches stemming from a combination of defective computer systems and staff breaking the bank's own rules. Some customers were illegally issued with two PEPs in the same year. Some customers were charged twice and others failed to receive the tax credit owed to them when they cashed in their PEPs. Lloyds also failed to ensure client money was invested in the PEP at the right time.
Inadequate procedures put clients in the position of breaking Inland Revenue rules. In some cases, staff failed to record national insurance numbers and over-rode on-screen warnings. Lloyds has paid pounds 920,000 in compensation to 5,486 customers affected by the blunders.