{
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The Franklin FTSE Emerging ex China UCITS ETF is classified as non-complex under MiFID II regulations based on the following key observations: 1. The fund uses physical replication to track the FTSE Emerging ex China Index, holding all or most of the index securities directly. 2. While derivatives are mentioned as potentially being used for efficient portfolio management (EPM), there is no indication they are used for leverage, synthetic replication, or complex strategies. 3. The fund has a straightforward investment objective of tracking an established equity index. 4. The underlying assets are liquid, publicly traded equities from emerging markets (excluding China). 5. The risk profile is typical for an emerging markets equity fund, with no unusual or complex risk factors identified. 6. The fund is UCITS-compliant, which imposes additional investor protection requirements. 7. There are no capital protection mechanisms, leverage, or inverse exposure features. 8. The cost structure is simple with a straightforward total expense ratio. While the fund invests in emerging markets which carry additional risks, the structure and strategy of the fund itself are not complex. The use of derivatives is limited to EPM purposes only, which does not trigger complexity under MiFID II.",
    "confidence": 95
}