RBS directors including Irish business giant Peter Sutherland could face sanction for their role in the bank's collapse if the UK's Business Secretary Vince Cable is given leave to take action on yesterday's revelations about RBS's demise.
Mr Cable yesterday said he was "immediately instructing" his lawyers to "provide further advice on what course of action is open".
The FSA said there was not enough evidence to bring enforcement action against RBS's senior board through the courts of the tribunals.
But Mr Cable's office may have other sanctions open to it.
A former European commissioner and current chairman of Goldman Sachs, Mr Sutherland is one of Ireland's best known expats.