I suspect that arbitrary requirements such as this are put in place by people who are not photographers and are ignorant about sensor size, ISO and image quality. They demand cameras with 24x36mm sensors, and for what? To print 1x1.5 inch photos in real estate promotional magazine or to put on a website? That's just laughable.
Uninformed people who "know" they are right about something they are ignorant of are next to impossible to educate.