Licenced or incensed?

Just been looking through the two dog papers and there was an interesting letter about the KC no longer refusing to register litters from people who have two litters from the same bitch in a year. I have to say I thought they rejected these litters and those born to bitches over 7 years of age.
The comment from Dog World printed after the letter was that the KC never did refuse to register these litters - but that it was against the law for licensed breeders to register two litters a year, but there was nothing to stop unlicensed breeders so these litters could be KC reg.
Is it just me that is shocked that the KC will register these litters? When I was working at the KC 20 plus years ago and the computerisation was just kicking in, too little gap between litters was one of the things the system highlighted automatically and I thought these litters were then rejected or at the very least strictly investigated!
Can't believe the KC is registering puppies that would even be illegal if bred by a licenced puppy farmer!
KC registration really needs to be the mark of quality that the public imagines it to be.