About power of wizard police - sure, I don't think they are very strong but they can fight in numbers untill oponent runes out of juice (like in Baldur's Gate 2 opening sequence - Ironicus vs Cowled Wizards). Still, it's hard to speculate about their fighting strength because we've never seen them in a fight ;-)
Also - how do you think a guildless police member would be able to participate in guild tournament?

Are you seriously implying an Exceed, a talking, sensitive, intelligent cat is inferior to a human in a legal sense?
I honestly don't know... would magic council even care to take time and make sure all of the... what... 5? 6? exceed were guaranteed laws equal to a human? I can see it going both ways...