diff --git a/rm-server/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-recordfolder-context.xml b/rm-server/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-recordfolder-context.xml
index 54d76d7938..afc80e15bb 100644
--- a/rm-server/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-recordfolder-context.xml
+++ b/rm-server/config/alfresco/module/org_alfresco_module_rm/capability/rm-capabilities-recordfolder-context.xml
@@ -80,10 +80,5 @@
          </list>
       </property>
       <property name="targetCapability" ref="rmCreateModifyDestroyFoldersCapability"/>
-      <property name="conditions">
-         <map>
-            <entry key="capabilityCondition.isClassified" value="false"/>
-         </map>
-      </property>
    </bean>
 </beans>
\ No newline at end of file
diff --git a/rm-server/test/java/org/alfresco/module/org_alfresco_module_rm/test/capabilities/DeclarativeCapabilityTest.java b/rm-server/test/java/org/alfresco/module/org_alfresco_module_rm/test/capabilities/DeclarativeCapabilityTest.java
index 1cc4a00a70..948770e112 100644
--- a/rm-server/test/java/org/alfresco/module/org_alfresco_module_rm/test/capabilities/DeclarativeCapabilityTest.java
+++ b/rm-server/test/java/org/alfresco/module/org_alfresco_module_rm/test/capabilities/DeclarativeCapabilityTest.java
@@ -413,7 +413,7 @@ public class DeclarativeCapabilityTest extends BaseRMTestCase
             {
                 // first take a look at just the record
                 assertEquals(AccessStatus.DENIED, capability.hasPermission(rmContainer));
-                assertEquals(AccessStatus.DENIED, capability.hasPermission(rmFolder));
+                assertEquals(AccessStatus.UNDETERMINED, capability.hasPermission(rmFolder));
                 assertEquals(AccessStatus.DENIED, capability.hasPermission(record));
                 assertEquals(AccessStatus.DENIED, capability.hasPermission(declaredRecord));
                 assertEquals(AccessStatus.DENIED, capability.hasPermission(frozenRecordFolder));
@@ -447,7 +447,7 @@ public class DeclarativeCapabilityTest extends BaseRMTestCase
             public Void run()
             {
                 assertEquals(AccessStatus.DENIED, capability.hasPermission(rmContainer));
-                assertEquals(AccessStatus.DENIED, capability.hasPermission(rmFolder));
+                assertEquals(AccessStatus.UNDETERMINED, capability.hasPermission(rmFolder));
                 assertEquals(AccessStatus.DENIED, capability.hasPermission(record));
                 assertEquals(AccessStatus.DENIED, capability.hasPermission(declaredRecord));
                 assertEquals(AccessStatus.DENIED, capability.hasPermission(frozenRecordFolder));