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As some of you have already noticed, this has been changed in the latest update, 23.1.A.0.726, but you may need to remove the account and add it again after the update.
Depending on where you bought the phone you may however not have received this update yet as it may need local and operator approvals before it can be released for your device.
So in Settings-sound and notifications-when device is locked,you have set show all notification content? Can you check that if you set a password or pattern it is the same?
Have you set the PIN yourself or is it enforced by for example an ActiveSync account?
Are you using a third party lock screen?
Boot on safe mode and try again
http://talk.sonymobile.com/t5/FAQ/How-to-boot-your-phone-into-safe-mode/m-p/348008#U348008
What if you remove the pin/password/pattern lock > restart your device and check again.
Uli, I think Rickard put things as they are,it might be related to the activesync.