Hi Steve,  A Sys Admin can create any password they want for an end-user.  However, once that end-user attempts to log in, if their password doesn't meet the current password requirements, they will be prompted to change it.

We also changed this behavior in SmarterMail 16, Domain administrators are now bound by the same password requirements as everyone else. System administrators still bypass the password requirements, and can set any password onto user a user without requirements like Rod mentioned.