Lloyds TSB has been fined £1.9m (€2.7m) by the UK financial regulator and will have to pay a further £98m in compensation to investors who were mis-sold a high-income bond product run by Scottish Widows, the company's insurance arm.

Scottish Widows developed and ran the Extra Income and Growth Plan, which the Financial Services Authority said was an unsuitable product for almost half of those who were sold the product through branches of Lloyds TSB.