Yun Yang abolished thoughts of the white-robed disciples, black-gowned disciples, blue-dressed disciples, and whatever complicated system that Little Fatty had set prior to this with a frown and without further interest.
The solution Little Fatty had come up with had been drafted with reference to the traditional rules of various sects and schools, taking what he thought was useful and adding his personal touch to them. If Yun Yang had followed his arrangements fully, the emulation could have gone terribly wrong.
Instead, Yun Yang decided to respond directly to the current situation and figure out the rest later. The Residence of Nine Supremes was starting out fresh anyway. It was unnecessary to intentionally copy the Bound of Universe's orthodox practices.