Yes; that is the situation.
Unless he holds EASA papers, in addition to the FAA ones.
That's why I did the JAA IR recently. It is completely useless for legal flying for me.
But this hangs on the EU residence of the "operator", not the pilot. The residence or citizenship of the pilot is irrelevant.
I think that it is time we valued our own training industry in EUrope and I see nothing wrong in sensible rules for Europe, about time we got a bit more businesslike and put European pilots first
That's the European protectionist approach. But it's doing it backwards. It is the bizzare European practices which have driven most of the IFR community to be N-reg in the first place.