By it's nature, the Federation cannot keep vigil over all of the colony worlds. This is simply the physical reality. Thus, Federal law enforcement gets laxer as you move further away from the Solar system. A far flung colony may get a Carrier visit every Terran year, leaving very little room for Federation oversight. Thus, further away colonies can get away with a legal system that is divergent than that of the larger Federation. If a private colony declares itself to be a monarchy with the owner of said colony as the monarch, it might take over a year for retribution to arrive, if at all.
However, as it was with the Fairweather colony, sometimes conditions are so bad for prospective colonies that the MCC is forced to step in. This task is relegated solely to the Olympus and other future Military Carriers – Carriers built for the explicit purpose of bringing rogue Carriers to heel and raze destitute colonies to ash.
The Olympus has an unchanging schedule – it patrols every known colony as periodically as possible. Because of her singular mission, she only carries Federal Inquiry teams – groups of civilian operatives that spend time on the surface, gathering intelligence, and observing the books. If they detect wrong-doing, the Olympus is also the home of a court of judges assigned by the Legislative Board.
If the Olympus finds questionable behavior, as determined by her Court, she may take several actions: She can arrest the administration in charge of the Colony, seize property, organize local elections, or bring recommendation to the Federation for financial penalties. Because all of these powers are granted by the Deliverance Accords that all colonies are signatory to, the Olympus may use any amount of military force to bring her objectives to conclusion.
Establishing Private Colonies
Let's suppose that a ne'er-do-well of a prominent family has come to an inordinate inheritance after his weird uncle passed away. This individual wishes to spend this money by establishing a private colony. This is a rather involved process.
First, the colony owner (henceforth referred to as the owner) must find a suitable location for this colony. Many private astronomy firms will offer this service, but, in the end, the data used for the eventual conclusion is provided and gathered by the Carriers of the MCC.
If a suitable location is found and the rights are purchased, the prospective owner then has to go the CID Company for the issuing of a Colony Bond under their name. The issuing of this bond will require a large amount of cajoling of the CID Company partners, and a large amount of political and real capital will have to be spent for the foundation right to a new colony. If this is accomplished, the prospective owner will then have to take the issued Colony Bond documentation to the MCC, who will assign a Carrier that will take the owner to their new colony.
The owner may, at this point, purchase hardware and advertise for the colony that he is founding. A seed round of immigrants could be found either in the private sector, or with Federation backing by way of the Solar Board. Delegates from other colonies could be approached to inquire if immigrants may be found outside the solar system. With the initial seed of the colony settled, the owner then decides whether or not they themselves will be new administrators – while most individual investors will prefer to go and attend to their colony in person, large, wealthy conglomerates will send reliable, proven representatives. With the administrative roles filled, the nascent colony departs aboard a Carrier designated by the MCC, and the real work begins.
In practice, because potentially habitable worlds are rare, and because 500 people alone is not enough to see quick enough return on most Colony Bonds, the Federation will send multiple administrations per system, letting the trials of setting up a nascent colony weed out the weak administrations from the good ones. A Carrier arriving in a system with a dozen independent known administrations may find the number thinned out to two or three, with mergers, acquisitions, bankruptcies, and takeovers reducing the number of active private investors.