Yes, they need to be individual members and CRB'd.
The RCO bit can be ignored so I will edit it out. I have just spoken to DF about this.
I don't know the reasoning behind it, but I do know that for insurance, club insurance doesn't cover you anymore. It seemed to come out of an assessment by the insurance company as to what they were actually insuring.
Although other schemes like NRA do recognise coaches/instructors, the NSRA membership now is part of the qualification, so if you don't have that then the chances are the NRA insurance wouldn't recognise you either. But that is speculation. I wasn't particularly impressed either when I heard it, but on the flip side, NSRA membership does get your kit insured to and from shoots, and it's 1/2 price for your first year.
From the point of clubs I feel it's a mistake to suddenly burden individuals with a fee that once was inclusive, because it's probably the instructors that would be more likely to lose out and most likely to work with shooters ad-hoc, where as coaches tend to be more structured in their approach and could well carry the membership as a requirement to run courses for instance. So suddenly to keep say 5 instructors a club or 5 instructors needs to find a chunk of change.
BFTA/NSRA County Coach
CSFTA Chairman/BFTA Rep