ASA Agent cannot start and report error "Unable to create configuration setup from the policy server"

Document ID : KB000005071
Last Modified Date : 14/02/2018
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Issue:

When I start the ASA Agent, this one reports error :

  SystemErr R SMFATAL: SiteMinder TAI ASA initialization error:
  Unable to create configuration setup from the policy server

Environment:
ASA Agent 12.0SP2 on for WebSphere 8.5.5.0 with JDK 1.8 64bit on Windows 2008 R2; Policy Server 12.52SP1CR00 on Windows 2008 R2; Connections: Current=0 Max=0 Limit=256 Exceeded limit=0 Policy Store on CA Directory 12SP14;
Cause:

  The ASA agent uses the SmHost.conf file, but you've configured
  the ASA Agent in the Policy Store as a 4.x Agent, which conficts.

Resolution:

  Make the ASA Agent configuration in the Policy Store by unchecking
  the "Supports 4.x agents". This will solve the issue.