the
One of the problems with it (less serious on single sided boards with typical generous-size punched holes) is that the lacquer doesn't quite stop at the body, and usually goes down the lead a bit. So it will affect the solder joint and maybe contaminate it. On a dipped or wave soldered single-sided board you've got an effective standoff of 1.5mm or so.
Keeps the circuit board from getting all ugly and discolored, but can be a problem in high vibration environments.
Best regards, Spehro Pefhany