Passcode now required after V3 upgrade of 3G iPhone

After upgrading to V3 the iPhone now requires me to enter a Passcode. There is no option to turn this off like in V2. Can anyone suggest why this may be the case?

I see option to turn it off. Where are you looking?
Also are you using a phone hooked to a corp Exchange account? If so, they have some control over forcing policies.

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