{
    "type": "ETC",
    "ucits": true,
    "replication_method": "physical",
    "swaps": false,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Commodity Futures Rolling, Collateralised Structure",
    "classification": "complex",
    "supporting_data": "The LS Brent Oil ETC is a collateralised exchange traded commodity (ETC) designed to track Brent Crude Oil futures via a physical replication method, investing directly in futures contracts and collateral assets. There is no use of swaps, total return swaps, or synthetic replication. The product is UCITS eligible and does not employ leverage or inverse exposure. However, the investment strategy involves rolling futures contracts, which introduces complexity due to contango and backwardation effects impacting returns and tracking error. The product is highly concentrated in a single commodity with high volatility and no capital protection, and the risk indicator is high (6 out of 7). The KIID explicitly states the product is 'not simple and may be difficult to understand' and is intended for investors with specific knowledge and experience. The collateralised structure and exposure to commodity futures with rolling costs and potential tracking error contribute to its complexity under MiFID II, despite the absence of derivatives used for leverage or synthetic replication. The PRIIPs KID and factsheet confirm no swap usage and physical replication, but the complexity arises from the nature of the underlying commodity futures strategy and the product structure as an ETC rather than a straightforward ETF. Therefore, under MiFID II, this product is classified as complex due to the inherent complexity of commodity futures exposure, rolling strategy, and collateralised ETC structure, which may be difficult for retail investors to fully understand."
}