We no longer have AFIs nor is there a requirement to hold an instrument rating (IMC or IR). No longer is there a requirement for an unrestricted FI to qualify to teach applied instrument flying (IMC or IR) before applying for the restriction to be removed.
Todays FI(r) before the restriction is removed (there is no upgrade) is required to have sent students supervised solo (not first solos) on 25 occasions and have totalled at least 100 hours of instructing.