Examiner doesn't have to be a UK Examiner
Any EASA authorised Examiner can test, in any country - but if UK is required to issue initial Licence then Examiner must be designated by UK CAA
I think you will find that the examiner no longer needs to be designated by the UK CAA.
A Part-FCL qualified examiner can now be from any EASA member state and all s/he is required to do is to undertake the UK CAA briefing, which has been set up as an administrative on-line exercise.
Examiners | Training and Exams | Personal Licences and Training
With the highly competitive prices being offered by overseas ATO's compared to UK equivalents, the flood gates may be opening - we are hearing of more and more students going overseas. It used to be commonly the case on every course that many students used to ask for recommendations of UK ATO's because they wanted a UK issued licence. Now, those enquiries are rapidly dwindling as all they need to do is get a UK medical and they are issued with a UK licence, irrespective of where they carry out their training or do their Skills Test.
I'm not going to cast doom and gloom by overplaying it and saying it is the beginning of the end but it certainly doesn't appear to bode well for the home based UK flight training industry.