The scenario described by the transcript isn't a separation breakdown. Visual separation assigned to a pilot is standard ICAO separation.
You're joking, aren't you? The lighty pilot gets oh about 15 secs to avoid a jet coming virtually straight at him (that gets an RA because the lighty is so close) and you say there's a Visual Separation standard?
Was it an RA or TA? The transcript suggest a TA which in the context would be fine.
Read the NTSB report in post 3.