iOS 3.1: 'Policy Requirement' error when adding Microsoft Exchange account

When using a Microsoft Exchange account on an iPhone or iPod touch, the following error message may appear:

Policy Requirement
The account "______________" requires encryption which is not supported on this iPhone.
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iOS (beginning with the iOS 3.1 update) can enforce the Exchange ActiveSync mailbox policy requiring encryption on the device. If your Exchange Server administrator has selected this option, only devices that support device-level encryption are allowed to sync Mail, Contacts, and Calendars.

To reestablish syncing, have your Exchange Server administrator change the mailbox policy to no longer require device encryption.

Managing Exchange ActiveSync with Policies

Models supporting hardware encryption include:

  • iPhone 3GS
  • iPad
  • iPod touch (3rd generation)
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