So what happens to the ex BCPL FI's now PPL FI's who have never done CPL or ATPL theory surely they will also be restricted to NPPL and LAPL?
The CAA has already answered this. BCPL holders who had completed the full BCPL course were deemed to hold ‘full’ CPLs for part-FCL conversion purposes. Restricted BCPL holders were deemed to hold PPL privileges only; however, for part-FCL conversion purposes, these privileges include the right to receive remuneration for conducting flight instruction.
As R/BCPL/FI holders were existing FIs, there is
no requirement for them to take the CPL exams in order to maintain their rights to be paid for continued work as FIs at PPL level. They have
not lost any privileges, for example, a PPL/FI with aerobatic instructional privileges may teach an ATPL holder aerobatics and be paid for doing so.
To instruct a CPL course, the FI must hold a CPL, but to instruct for a rating, the FI must hold that rating him/herself in addition to any additional instructional requirements.