{
    "success": true,
    "data": {
        "leverage": false,
        "derivates": true,
        "swaps": true,
        "inverse": false,
        "replication_method": "synthethic",
        "ucits": true,
        "type": "ETF",
        "complex_factors": "Synthetic replication using swaps. Hedging of currency exposures using FX forward contracts. The MSCI Japan Index itself may be complex.",
        "classification": "complex",
        "supporting_data": "The iShares MSCI Japan EUR Hedged UCITS ETF employs synthetic replication via swaps to achieve its investment objective as stated in the KII document, which, according to the MiFID II assessment, introduces counterparty and collateral risk. The ETF also uses FX forward contracts to hedge currency risk, which are derivatives. Because of the embedded use of derivatives and swaps the asset is not easily understood by retail investors due to the complexities of these instruments. This aligns with the ESMA guidelines, which emphasize the need for a comprehension alert in the KID for complex products. The KIID states the use of FX forwards and swaps.  The ESMA guidelines on appropriateness also highlight the importance of distinguishing between complex and non-complex instruments, with derivatives being a key factor in the complex classification (ESMA, 2019, p. 7). This is further reinforced by CESR's stance that money market instruments, bonds, or other forms of securitized debt embedding a derivative should not be categorized as non-complex for the purposes of the appropriateness test. (CESR, 2009, p. 16). The fact that the fund is passively managed also does not exclude it from being deemed complex and would be classified accordingly. Because of the embedded derivative use the asset would be deemed 'Complex'."
    }
}