During the test it was observed that the password was transferred in plain text without any encryption/encoding in XML on login page using a Proxy tool Burp suite. This may pose threat to security of application. Please find the image attached for more details.
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SmartClient does not impose any constraints on how you pass login and password information to the server; you can encrypt before sending if you like. This of course would be redundant with use of HTTPS, which already means your password is not actually being sent in cleartext.
Note further that in the QuickStart Guide, we recommend explicitly against using SmartClient for the login page of an application (for several reasons, but security is not one of them).
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