Why on earth does it have to go to policy dept at CAA? And why on earth does your FTO need to clarify with the CAA? There's no blind alley, its perfectly clear, in black and white, in Lasors(Section D). It takes 20 seconds to google it. If the FTO and UK CAA are not singing from the same hymn sheet(i.e. Lasors) then god help us!
Your FTO should have a current copy of Lasors to hand, why not ask them to read it and explain to you why they need to clarify with CAA? And likewise with whoever you spoke to at PLD at Chateux Belgrano Gatwick...theyre speaking bolleaux!!