Create a user in CRM with a particular territory (Europe).
Now create a person belonging to a different territory (US) and assign the person to a different account manager.
Log into iPhone App with the user created in the "Europe" territory and sync with CRM.
After the sync the user is able to view contacts that they should not have access to. These should be restricted by territory settings.
This issue has been escalated to development and will be resolved in a future release of Sage CRM
This issue is only affecting Sage CRM 200 installs