{
    "complex": false,
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": null,
    "classification": "non-complex",
    "supporting_data": "The Franklin US Mega Cap 100 UCITS ETF is classified as non-complex under MiFID II regulations. The primary reasons for this classification are: (1) The ETF uses physical replication to track the Solactive US Mega Cap 100 Select Index, holding the underlying securities directly. (2) While the ETF may use derivatives for efficient portfolio management, this is limited to hedging and minimizing tracking error, not for leverage or complex strategies. (3) The fund's investment objective is straightforward, aiming to track a well-defined, liquid index of large-cap U.S. stocks. (4) The risk profile is transparent and aligned with the underlying assets, with no capital protection mechanisms or structured features. (5) The ETF is UCITS-compliant, providing additional investor protections and liquidity. (6) The KIID and factsheet indicate no use of leverage, inverse strategies, or complex derivatives. (7) The fund's risk indicators and disclosures are clear and do not suggest complexity beyond standard equity market risks. The ETF's physical replication methodology, lack of leverage, and straightforward investment strategy make it suitable for retail investors under MiFID II.",
    "confidence": 95
}