Stuart,
I won't claim to be an expert on FAR's. I'm not. I just asked the guy who game me the licence the question. It also seems to be backed up by the opinions of other, more knowlegable people than I, that I have spoken to.
You above quote seems to refer to the issue of the licence. And yes, absolutely you will not have to show any competence whatsoever to be issued with the licence. And this licence never needs to be renewed. However to get yourself current, you will need a BFR.
I wouldn't fret about it though. Mine was nothing more than a club check out.
dp