Our Security Department did that a couple years ago, too. Sucked because I made some knives to match the University colors and stuff, small 2" bladed fixed blades and had some nice, small discrete folders. I was at least able to convince the bosses that we need at least a multi tool with a knife blade, so we bought Gerber Suspension NXT's for each person in the Department and they could also get their own normal sizes Multi Tool approved to carry on duty.
We had some people carrying larger folders as well as wrench based Multi Tools that were like 10" long, which is what prompted the change.