The requirement for CPL level knowledge comes from ICAO Annex 1 For many years the UK treated the FIC and its pre-entry flight test as being equivalent to CPL level knowledge. It only changed when JAR-FCL loomed and it was assumed that Europe would require the UK to meet the ICAO CPL requirement in full. The UK aligned this requirement some 10 years ahead of JAR-FCL, and with it came the BCPL (Restricted) for aeroplanes but, the helicopter world never had an equivalent licence.
There has been a lot of talk of the merits of one system versus the other but what exactly does EASA plan? Whilst there are a number of rumours on this thread the following is the 1st draft LAFI privileges currently in EASA Part FCL
FCL.I.1.825 LAFI - Privileges and conditions (a) The privileges of the holder of an LAFI rating are to conduct flight instruction for the issue, revalidation or renewal of:
(1) a basic LAPL, in the case of aeroplanes and helicopters;
(2) a LAPL, in the appropriate aircraft category;
(3) Class, type or group ratings to be endorsed on a LAPL, in the appropriate aircraft category;
(4) a night qualification in the appropriate aircraft category, provided such a qualification is held;
(5) towing and aerobatic qualifications in the appropriate aircraft category, provided such a qualification is held;
(6) cloud flying qualification, in the case of sailplanes, provided such a qualification is held
(7) Mountain ratings, provided such rating is held, in the appropriate aircraft category
(8) A LAFI rating, provided that the instructor has given instruction for at least 3 years