jonnypick,
with all due respect, i think that keygrip has hit the nail on the head here. LASORS will not only answer all of your original queries, but contains essential knowledge for any JAR instructor (whatever level) and should be read and inwardly digested. it answers all of your (and your future students) licencing questions.
just to help you on your way, the section that you are intrested in is
http://www.caa.co.uk/docs/175/Lasors_Section_H.pdf
this section will also answer your follow up question.
happy reading.