What would be the issue if did not install password policies

Hi, when i try to change my password thru the self-service site in "Manage my password". It keep showing the error message "Your password does not comply with password policies" and so i cannot change my password. This error message is it because i did not install the password policies? For cases whereby password manager components is not install to AD, does it based on the policy as applied in the AD or there is no policy? thks