To simplify the configuration and security of Identity Manager drivers with Permission Collection and Reconciliation service, use Distribution passwords for Identity Manager Driver Administrator and User Application Resource Administrator administrative users. Identity Manager uses the Distribution password to control password synchronization between the Identity Vault and connected systems. Identity Manager reads passwords for these administrative users from their nspmDistributionPassword attribute.
Also, you need to configure a password policy for both of these users or use the default Sample Password Policy and assign the policy to them. For more information, see Password Management Configuration
in the NetIQ Identity Manager User Application: Administration Guide.