Lets get this in context, it is related to non JAA licence holders flying aircraft that come under EASA jurisdiction i.e. EASA reg aircraft. Nothing to do with N reg!
Para 1 says that ICAO PPLs may be acceptable to the authority; exactly the same as it is at the moment.
Para 2 relates to commercial licences and the process of validating them to conduct commercial activity in EASA Reg aircraft. Again exactly the same procedure as the UK currently adopts.