Need advice about nofollow attribute for link

Hi guys,

I have a question - a company i work with has been informed by their SEO agency that all links from agencies to their company page should be made no follow. Is there any truth in this? 

I can understand if Google were cracking down on links to such a degree that these may be considered paid links, as you`re providing a link mainly due to the fact you are in business together.

But this seems a little extreme! Any ideas??