I have a server-side JAX-WS SOAPHandler
(on WebSphere v8) that in certain cases needs to respond to the client with a SOAP response that it has in a String variable
This error can be resolved by disabling the generic Fault handling feature on IBM Websphere Application Servers.
In order to disable this property navigate to the Admin Console > Servers > Application Servers > > Process Definition > Java Virtual Machine > Custom Properties.
Enter the Key as 'webservice.unify.faults' and value as 'false'.
Once updated restart your server and install the EARs to get the Custom WSDL errors for your SOAP transactions.