The first school should do some revalidation work with the CAA because I think they are using the pre 2002 rule book. Mind you even then it was only after 10 years that all the exams had to be taken again.
The second is correct.
Now days it is up to the CFI to determine what retraining is required, and there will be the usual GFT type test that has to be passed after the retraining. Finally the CAA will want to assess your friend's log book and will charge him a fee for doing so. Only then is he fit to fly as P1 again.
Hope that helps.