Here is an Italian rule (offset to Axis Vichy rule).
Italian Co-Belligerent Army / Italian Social Republic
ICBA is a pro-Allied Italian government created after Rome is captured. At the same time, ISR, a remnant and a pro-Axis goverment of Mussolini’s regime is created and seated out of Northern Italy. ICBA eligible territories are all Italian controlled territories, EXCEPT Northern Italy and Italian controlled territories with German units. These territories are treated same as pro-Allied neutrals. All other forces are part of the Italian Social Republic. ISR becomes the new Italy and starts with 0 IPCs. On the each ISR turn, they CAN get up to 5 IPCs from Germany. For the ICBA, any movement is done after Vichy.
After Rome is captured, the following happens:
1. All ICBA forces (land/sea/air) standfast and defend against Axis attacks.
2. ICBA land forces can move during the non-combat phase.
3. If an ICBA territory with units is occupied by Allied player, no new units are created, but any ICBA infantry units are converted to the occupying Allied power, and all others disband.
4. ISR units may move as normal. ISR can be ordered to attack ICBA units.
5. All ICBA units return to Axis if Rome is liberated. ICBA cannot be re-created.
(Optional: Any ICBA controlled Allied territories return to original owner, non-infantry units disband.)