If the dogs are small, Sheltie or Cavalier size, stewards often have their arms down at the side, as the dog would have to jump up to sniff. Clasped in front or in a hoody pocket on a frosty morning is fairly common. The regs are about the HANDLER's arm and hand positions, not those of the stewards, if I remember correctly.
Now you know one more thing for which to train or proof! Here are a few more ideas:
Proofing List
Steward at large,
Charlotte