We authorise people to fly on our licenses when sending solo. We don't examin students for solo, the level that needs to be obtained is purely one persons opinion. There is no standards they have to meet. The instructor though has to justify themselves if anything goes wrong. And more to the point there is no exam for the instructor to do to prove there standards are acceptable. Everyone presumes if they don't crash your acceptable. But there is no training to do that your just meant to pick it up as you go along.
And as for club checkouts any pilot can do them, ppl instructor or otherwise in fact if they are within 90 days, the person doing the checking doesn't even need to have a license. I know of a group that has a unmedically fit pilot defined in the insurances docs as a check pilot. So as such it is an opinion that the person is safe. It holds no merit in the grand scale of things apart from it means you do or don't get access to someones aircraft. It has no legal standing apart from a tick in the insurance box.
FE's have been trained and be examined themselves for their standards. All these hour flights should be given to them and they should be empowered to be able to suspend/revoke someones ticket until they can demonstrate competency. This current go for a fanny around with what could be some clueless knumb nut 225hr FI(R) who can barely fly themselves is utterly pointless.