Originally posted by Nass is my expectation wrong
No, your expectation is correct. FA lenses should work with aperture setting in the body. As noted above double check that you are in 'A' mode on the lens. Take it off 'A' mode and rotate the aperture through the range then put it back in 'A' and try again. Also try buffing the contacts with a micro-fiber cloth. Also look at the contacts on the lens, they should all be present and sticking up the same amount.
I don't think you need "allow aperture ring" turned on unless you are using it in a non-'A' position. But it does not hurt anything to set it on anyway.