The fines against Lloyds TSB Bank and Bank of Scotland are the largest ever levied for retail conduct failings by the Financial Conduct Authority or its predecessor, the Financial Services Authority.
The regulator says staff were under so much pressure that in one case, an adviser sold products to himself, his wife and a colleague to avoid demotion.
Tracey McDermott, the FCA's director of enforcement and financial crime, said today that the industry had been warned to put the customer ahead of staff incentives.