In Magento 126.96.36.199 and newer you need to white list custom static blocks that you created.
Clearly, all that remains is adding the block type you wish to display to Magento’s white list. Luckily, this is very easy and can be done through the Magento backend interface. Simply navigate to
System => Permissions => Blocks
And add the block type you wish to display. For a visual of my situation, see the screenshots below
Click on Add new Block, fill in the block type and set Allowed to Yes
Check this article for more information - http://www.dudesquare.nl/blog/2015/10/31/static-block-shortcodes-not-working-1-9-2-2/