After implementing UP, NDPS, ZEN, NILE (SSL connections), and SLPDA may not work. This is an application problem; the auto-generated passwords created by these applications violate password policies.
The workaround is described in TID 10092957, and a patch will soon be available.
If you create a Password Policy (currently only possible using Identity Manager 2) and enable Universal Password, the Advanced Password Rules are enforced instead of any existing password settings for NDS Password. The legacy password settings are ignored. No merging or copying of previous settings is done automatically when you create Password Policies.
For example, if you had a setting for the number of grace logins that you were using with the NDS Password, when you enable Universal Password you need to re-create the grace logins setting in the Advanced Password Rules in the Password Policy.