Exchange ActiveSync requires new pass code?

I've started working for a new company and whenever I try to set up my work Exchange account on my iPhone it mandates that I change my pass code to something with more than 4 characters, numbers and letters with one special character (#&!).

What's strange about this is that in my old company I could just use my existing 4 digit pass code when I had my iPhone connected to Exchange. It didn't require me to change passcode.

Is this instruction being enforced by Exchange ActiveSync?