For what it's worth, I've also heard the same thing from some contacts in the UK. Unfortunately I've asked a few people who could be in the know on both sides of the pond, and none of them have heard of anything. Some people insist that it will be in place by next year, but I very much doubt that.

My guess is that discussions have probably taken place at some level, but we are far away from any sort of conclusion to this. I was toying with the idea of converting to JAA myself, but with this rumour out there and the economy in the gutter, I'll play the waiting game for now and enjoy Canadian aviation!