Bose - it is an old fashion concept these days - it use to be called common sense.
Can you imagine the Court Case - the CAA are claiming the pilot was flying without a license, the judge asks whether he passed his test .. yes, whether the pass was recorded by the CAA .. yes, and whether a valid license had been issued .. yes, so you are seeking to prosecute the pilot because he divided his license into a few sheets to fit in his wallet .. yes - hmm, I don't think so - call me old fashion if you will.
Whether strictly the CAA had a case or not even they in a million years wouldn't prosecute that one and if it were combined with some more serious action the Court would disregard the transgression.
I am not recommending you do divide up the license, and it wasn't a criticism of your post Bose, nor that this isn't the official line, just a comment that we can take ourselves far to seriously. I can tell you if I divided up my license it wouldn't cause me one wink of lost sleep and I would very happily plead my case in Court.
I do of course understand you have to tow the official line.