You paraphrase this way:
An FI shall have his/her privileges limited .....in the following cases:
and I would paraphrase like this:
An FI shall have his/her privileges limited to conducting flight instruction ....in the following cases:
For the want of a comma a disagreement ensues.........and we all know how well written Part-FCL is !!!
My conclusion is that, unless someone finds something I could not find by myself in the regulation, a FI restricted with 200 hours IFR may undertake the IRI course and teach for the IR if he/she passes the assessment of competence.
And I say again: "Good Luck if you rely on that interpretation !"
Please let us know of any ATO that accepts an FI(R) on to their course to learn how to Instruct for an IR.
Please let us know of any Competent Authority who has granted the Privilege to Instruct for an IR to an FI(R).
In the UK the CAA require that an FI is not restricted in order to teach for the IMC Rating - I cannot see them allowing an FI(R) to Instruct for an IR ( or even an IR(R) ), but not an IMCR.