Did you see the breakaway order Legion of Armageddon proposal? This would have classified as a "splinter" faction in several big ways.
But... we had problems. You see, admins will NOT talk to you in any constructive dialog way until you have spent 500 million.
If they will talk to you after, I don't know, because after dragging information grudgingly out of three different admins, it was discovered that there were several problems with the Core RP of the faction, and that there was no way to fix it so it could be played. This MAY be false and me lacking perfect understanding of what I dragged out of the admins, but that is the conclusion I came to after attempting to talk to admins for several days as per rule #3. 500,000,000 is a lot of credits. With my RP trader, it is 100 hours of trading. Considering I play this to have fun, not powertrade, I doubt I'm gonna dump my transport for an Advanced train.
So, how do you ensure you have a faction that won't be rejected and waste 500000000 credits?
Here's a hint, Make it vanella, and then remove the Vanella beans to turn it even more plain.
Admin Loweri has told me there is a chance for a Corsair faction which is nothing except corsair stuff and is restricted to corsair space still faces a chance of rejection on the basis of being yet another corsair faction. If there is that much risk in a faction with 0 NPC diviation, what chance does a custom faction have? So is it worth the 500 Million? Sure it is, just don't expect those who have the good ideas to spend that much time on them... Wait, that defeats the purpose, doesn't it?