Hi guys,
After a few phone calls I have got hold of a copy of the BK117 Flight Manual Supplement titled "Alternate Proceedures - Eng Chip Light On". As mentioned earlier it does in fact allow the pilot to bring the effected engine back to idle and monitor the gauges accordingly. It then goes on to say that prior to landing you may bring the engine back up to the fly position and execute an AEO landing.
This supplement came about due to the fact that the engine manufacturer's proceedure's state that you may bring the donk back to idle and monitor the instruments, and execute an emergency shut down if secondary indications are apparent. It seems that it is only in BK Flight Manual that you must shut down the engine, hence it wasn't too difficult for the CAR 35 guys to get the supplement put through.
Cheers