{
    "success": true,
    "data": {
        "ucits": true,
        "type": "ETF",
        "leverage": false,
        "derivates": true,
        "swaps": true,
        "inverse": false,
        "replication_method": "synthethic",
        "complex_factors": "The ETF uses unfunded swaps to achieve its objective, introducing counterparty risk.",
        "classification": "complex",
        "supporting_data": "The Invesco JPX-Nikkei 400 UCITS ETF uses unfunded swaps (derivatives) to replicate the index. This synthetic replication method introduces counterparty risk, as the ETF relies on a counterparty to deliver the index performance. The KID explicitly mentions this risk and the need to understand the implications of the ETF's use of derivatives. The use of swaps implies that the product doesn't physically hold the underlying assets of the JPX-Nikkei 400 Net Total Return Index, adding to the complexity. The currency hedging further adds to the complexity. It's structure and risks might be difficult for a retail investor with basic knowledge to understand. This classifies the ETF as a complex instrument under MiFID II rules based on its replication strategy with the usage of swaps, this is also in line with the CESR advice on Clarification of Definitions concerning Eligible Assets for Investments of UCITS (CESR 06-005, January 2006).",
        "ESMA_reference": "ESMA Supervisory Briefing on Appropriateness and execution only - ESMA 2019. It also references the ESMA/2015/187 on ESMA Guidelines on complex debt instruments and structured deposits dated 4 February 2016 and Q&A1 in relation to appropriateness/complex financial instruments."
    }
}