When you deploy password policies to mobile devices under Exchange Server Connectors in Microsoft System Center 2012 Configuration Manager, the Require password setting on devices policy is applied successfully to a mobile device. However, when you check the Compliance Rules in Configuration Manager, the Require password setting on devices policy is listed as Error.
To work around this problem, set all three of the following password policies for mobile devices:
- Require password setting on devices
- Idle time before mobile device is locked
- Password expiration
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.