{
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Derivative usage for direct investment purposes"
    ],
    "classification": "non-complex",
    "supporting_data": "The iShares FTSE 250 UCITS ETF is classified as non-complex under MiFID II regulations. The primary reasons for this classification are: (1) The fund uses physical replication as its primary investment strategy, directly investing in the underlying equities of the FTSE 250 Index. (2) While the fund does mention the use of financial derivative instruments (FDIs) for direct investment purposes, this appears to be for efficient portfolio management rather than as a core strategy element. (3) There is no evidence of leverage, inverse strategies, or complex underlying assets. (4) The fund has a straightforward investment objective of tracking the FTSE 250 Index. (5) The risk profile, while rated at level 6, is primarily due to the equity market risks rather than structural complexity. (6) The fund is UCITS compliant, which imposes additional investor protection requirements. The derivative usage mentioned does not appear to be extensive or complex enough to warrant a complex classification, as it seems to be used for optimization purposes rather than as a primary investment strategy. The fund's physical replication method and straightforward index-tracking objective are the main factors supporting the non-complex classification.",
    "confidence": 90
}