{
    "success": true,
    "data": {
        "leverage": false,
        "derivates": true,
        "swaps": false,
        "inverse": false,
        "replication_method": "synthethic",
        "ucits": true,
        "type": "ETF",
        "complex_factors": [
            "Use of derivatives for index replication",
            "Potential counterparty risk and collateral risk associated with derivatives",
            "Opacity resulting from synthetic replication method"
        ],
        "classification": "complex",
        "supporting_data": "The fund, UBS (Lux) Fund Solutions - MSCI World Socially Responsible UCITS ETF, is passively managed and tracks the MSCI World SRI Low Carbon Select 5% Issuer Capped Index.  While it states that derivatives may be used for 'efficiency in gaining exposure', the key point is that the fund may use derivatives 'in order to generate efficiencies in gaining exposure to the index'. The phrasing strongly suggests that the use of derivatives is integral to replicating the index's performance, rather than just being a means of mitigating risk or transaction costs. The fund's stated use of derivatives as part of its replication strategy and the potential risks associated (counterparty and collateral risk) are not readily understood by investors without advanced financial knowledge.  This, combined with the fact the fund uses synthetic replication to replicate the index (as opposed to physical replication), triggers a complex classification according to the MiFID II framework.  The mention of derivatives, their potential for mitigating risks, or generating efficiencies does not override the core issue: the derivative's integral role in the replication strategy and associated risks. The complexity of the underlying ESG index (MSCI World SRI Low Carbon Select 5% Issuer Capped Index) doesn't automatically render the ETF complex, but the reliance on derivatives to replicate it contributes significantly. Although there are indications of lower risk or transparency as part of the structure, the overall impact of the factors listed, according to MiFID II, are in line with a complex classification, requiring a comprehension alert in the KIID."
    }
}