Does it mean that an instructor with a PPL (for instance a CPL holder with a class 2 medical) can instruct for any rating (MEP, IR-ME) a student who holds a PPL, but not a student who owns a CPL?
There appear to be different interpretations in different States. In the UK a PPL holder may teach any ratings that can be added to a PPL i.e. in (3) "this licence" refers to the FIs licence, not the person being trained. A PPL holder cannot train a person for a CPL and in an Integrated ATO all training is considered to be towards a CPL. MEP; IR etc can be trained by a FI holding a PPL on modular courses only.