{
    "success": true,
    "data": {
        "leverage": false,
        "derivatives": true,
        "swaps": true,
        "inverse": false,
        "replication_method": "physical",
        "ucits": true,
        "type": "ETF",
        "complex_factors": [
            "Use of OTC derivatives for gaining exposure to the index",
            "Counterparty risk stemming from OTC derivative use",
            "Investment in structured notes"
        ],
        "classification": "complex",
        "supporting_data": "The UBS Core MSCI EM UCITS ETF is indeed UCITS compliant and primarily uses an optimized physical replication strategy (sampling). However, the Key Investor Information Document explicitly states that the sub-fund 'can also make use of derivatives in particular where it may not be possible or practicable to replicate the index through direct investments or in order to generate efficiencies in gaining exposure to the index'. It further clarifies that 'The use of OTC derivatives further engenders counterparty risk'. While derivatives are also stated for 'efficient portfolio management' (EPM), their potential use for gaining index exposure when direct replication is not practicable, coupled with the explicit mention of 'OTC derivatives' and associated 'counterparty risk', indicates they are not solely for risk management but can be an inherent element of the strategy for exposure. The general MiFID II rules provided state that derivatives integral to achieving the investment objective (such as using swaps to replicate performance) or those introducing counterparty risk lead to a complex classification. Furthermore, the provided ESMA guidelines, while initially stating UCITS are automatically non-complex (CESR/09-295, para 69, 80), also indicate a shift in regulatory thinking towards a more nuanced approach where *some* UCITS with specific features (like structured UCITS, ESMA35-36-1640, Art 25(4) fourth indent) can be complex. Critically, the final instruction for this assessment states: 'If any element of... any Swap usage is identified then the 'classification' must be 'complex''. The use of 'OTC derivatives' for 'gaining exposure to the index' and the resulting 'counterparty risk' strongly implies the use of swap-like instruments. Additionally, the fund's ability to invest in 'structured notes' contributes to complexity, as structured notes often embed derivatives and introduce intricacies difficult for retail investors to fully understand, as highlighted in CESR/09-295 (Section 2, para 54) where structured instruments linked to performance are listed as potentially embedding derivatives and thus complex. These factors collectively overturn the general presumption of non-complexity for UCITS ETFs."
    }
}