FKA,
don't forget that all that JAA stuff is not binding. It's the lowest common denominator achieved by JAA member states but it is not an EU law in force in every country.
Iceland has the right to deviate from the original rules, add its pinch of salt, tailor them to its needs and then transpose them into Icelandic regulation. And voila, you have Icelandic "JAA-like" regulations and licenses recommended for mutual recognition in JAA countries !
If the Icelandic CAA agrees to deliver a validation to the same pilot for several years in a row, it's both legal and JAR-compliant.
Now that EASA takes over and what they publish is EU law (binding in all EU member states as soon as it's approved by the EU Parliament and published), I'm curious to see what will happen with this validation thing.