Steve explained it right with regard to the dispensation.
Please read rules in section 5 and 6 of the F16 ruleset to take knowledge of the basis of these dispensations.
Rule 6.1.3. is the main rule in this respect, although it only works properly because of the other section 6 rules.
Rule 6.1.3. states: Both the SCHRS (ISAF) and Texel ratings of the design must be equal to or "slower" than the rating assigned to the formula 16 class.
AS long as the Mosquito's adhere to this rule they can succesfully invoke the grandfather rule. This yearly review of the grandfather status is only included so that we can prevent any grandfathered class from blowing the F16 class up by entering a non-fair boat exploiting the openness of the grandfather rule. Up till now the Mosquito sailors conduct has been nothing but prefect so I don't even see a remote chance of that happening.
Up till now the grandfather status is automatically renewed yearly and I'm fully planning to do that, also this is layed down in the rules 2.5.x which state the spirit of the rule. In short F16 may only rule on issues that clearly involve an unacceptable inequality to the F16 class.
Of course the inequality of the Mosquito's is only to themselfs and not to the class as a whole, therefor F16 "must" allow them according to the class founding principles.
I say, there is not danger of teh Mosquito's losing their grandfather status. I personally would think it to be a great loss as well when this would happen.
In all other aspect I refer to the text of Steve
One additions :
I'm well aware of the skewed ratings that are assigned to cat-rigged boat by especially ISAF sytem and in less severe fashion by Texel. The F16 rules have been correctly mildly for that by allowing the cat-rigged mode to be rated a little faster than the sloop rigged version on paper. F16 doublehanded Texel = 101.43 = high in the 102 while the cat-rigged setup is rated as 100.65 = low in 101 So on paper the catrigged setup is rating about 1.8 points = 65 second/hour faster than the doublehanded sloop setup.
Back then this was mainly based on experiences in the Taipan class. They seems to be similar to the experiences in the Mosquito class. I think about 2 points is conservative approximation of the error of Texel with regard cat-rigged solo sailed boats. I have entered several modification proposals to the Texel committee regard this and other points based on the same set of experiences. This was thus fully intentional and I think it was one of the greater decisions at the time.
On the side : this also clearly shows how thought out the F16 rules are and how much effort has gone into designing the right framework that will produce the setup we want.
Wouter