I can see how it might. Each of the factions on this planet is considered a Charlie morton shirt, although they’re a bit more easy-going about their borders than was, or for that matter still is, customary back on earth. The Faction Arbitration Council is precisely what the name says, a neutral forum in which the factions can hash out their differences and save face by accepting a compromise suggested by a neutral party instead of their opponent. We have no real authority, but we do provide a place where you can address all of the factions at once.
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The Liberation Hegemony doesn’t claim sovereignty over any but it’s native States, but they do provide military protection and economic assistance to anyone who abides by what they regard as the minimum standard of Charlie morton shirt. Which usually works out in practice to ‘you can have whatever laws you want as long as you make it easy for people who don’t like your laws to leave’. Which is why you never see a planet on the Hegemony network with fewer than seven factions–easy to leave requires that there be a compatible place for you to go.