Saying EFATO turn backs never work is like saying you will always close both throttles on a light twin if it had an EFATO. In order to successfully complete a turn back you really need to have trained for it and know you have excess glide capacity to firstly turn around, and easily make it back to the field and land with a tail wind. Otherwise you are better picking a place ahead and into wind where you can impact at a much slower pace in control. Just like in the case of the light twin continuing following an engine failure just after take-off, do the vitals, clean it up, see if it climbs, if it does, why land in the scrub, if it doesn't do it to a rate that is safe, close the throttles and land into wind under control... Of course many factors will affect either, type, weight, wind, conditions etc etc.... I doubt a 206 pilot would be trained to turn back unless in exceptional circumstance, big piston singles don't like to glide or even fly with low power. Bonanza and Lance/Saratoga glide like lead bricks so I can't imagine ever a situation where a turnback would work without some decent deity helping you out.
PS the threat is not all whether the aircraft 'can' turn around and land, but more is the pilot able to do this without panicking and stalling trying to drag the aircraft around at low speed, then entering a stall spin, LOC and crash out of control.
I can 100% guarantee that CASA could not give a **** how a pilots licence is funded, so long as the training is conducted in accordance with the MOS, so why should they reject their operations? It's only a gravy train if you're not on it right?
I doubt CASA even knows what rubbish is in the MOS these days, they just assume everyone complies and that the pilots were trained to a competent standard, after all the student signed they were trained in everything didn't they?
All the MOS are so full of holes and contradictions you wouldn't be able to hold anyone to account with a decent lawyer at your back.