I stand (as always) to be corrected but, in the good ole days, PPL holders with circa 200hrs became eligable to take the FIC, no?
Well, I'm assuming you're an FI and as such would have a bit of a handle on JAR. However as you seem unsure I will correct you. It's bu@@er all to do with the "good ole days".
Fact:-
JAR–FCL 1.335 FI(A) – Pre-requisite requirements
(See Appendix 3 to JARFCL 1.240)
(See Appendix 1 to JARFCL 1.470)
Before being permitted to begin an approved course of training for a FI(A) rating an applicant shall have:
(a) at least a CPL(A) or completed at least 200 hours of flight time of which 150 hours as pilot-in-command if holding a PPL(A);
You do not require a CPL of higher in order to instruct for the PPL, a PPL/FI is fine.
You do need a CPL or higher in order to do Aerial Work. Currently exemptions exist to allow a PPL holder to carry out Aerial Work in certain circumstances. These include Glider Towing, Parachute Dropping and Microlight Instruction. Paid instruction is Aerial Work, unpaid instruction is not.
Under the present regime it is customary for an aspiring ATPL to do his professional exams and get a (woefully underpaid) job as an FI to build his hours to a level where he gets a chance at the all-important airline interview. While he's doing this his ratings lapse and require renewal and he's paying interest on the big loan, which is making him poorer.
How's this for an alternative?
ANO gets amended to permit paid instruction by a PPL/FI.
Airline candidate gets his PPL, 200 Hrs and does his FI course.
Builds his hours as an FI on a Class 2 medical rather than a Class 1 (less expense, a Class 1 is NOT required to instruct)
When he feels ready he goes off and does his professional training and presents himself for interview with fresh ratings and his head full of all the things he might get asked. A friend of mine is now flying Citations having carried the interest on circa 100k for a couple of years. This route would have made his life a heck of a lot easier.
From a safety perspective:-
The CPL requirement for paid instruction was introduced in the 1970's, one assumes with the intention of improving standards, however it has (IMHO) not made a blind bit of difference. The fact that instruction by a PPL/FI has equal standing under JAR as that by a CPL/FI or ATPL/FI bears out this view.
What has made a difference is changes in the syllabus and the exam regime for PPL candidates and also changes in the requirements for obtaining and maintaining an FI rating.