College teams not allowed to play non-college teams?!

I'm the faculty advisor for a D-3 college team and I just found out that my school instituted a new rule that the team is not allowed to play against non-college teams or alum teams in fall tournaments. This includes playing against our own alum team at a tournament we host. So they were forced to forfeit a couple games at a recent fun tournament.

I've been a little out of touch for the last 5 years or so, but is this normal? My school has been overly concerned with risk management, but this seems ridiculous, and I'm trying to make sure I understand this correctly. Thanks for any help.