{
    "fund_name": "HSBC MSCI TAIWAN CAPPED UCITS ETF",
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Derivatives for investment purposes",
        "Total return swaps",
        "Contracts for difference"
    ],
    "classification": "complex",
    "supporting_data": "The ETF is classified as complex due to its use of derivatives for investment purposes, including total return swaps and contracts for difference, which introduce counterparty risk and potential tracking error. While the primary replication method is physical, the use of derivatives beyond efficient portfolio management (EPM) and the potential for up to 10% exposure to swaps and other derivatives indicate complexity under MiFID II. The KIID explicitly mentions the use of derivatives for investment purposes, which is a key trigger for complexity. Additionally, the fund's risk profile (category 6) and the presence of counterparty risk further support this classification.",
    "confidence": 85,
    "counter_argument": "The fund primarily uses physical replication and has a straightforward index-tracking objective, which are typically non-complex indicators. The derivative usage is limited to 10% and includes standard instruments like swaps for efficient portfolio management. However, the explicit mention of derivatives for investment purposes and the potential for significant counterparty risk override these non-complex indicators.",
    "risk_level": 6,
    "key_risk_disclosures": [
        "Emerging Markets Risk",
        "Exchange Rate Risk",
        "Index Tracking Risk",
        "Investment Leverage Risk",
        "Liquidity Risk",
        "Operational Risk",
        "Counterparty Risk",
        "Derivatives Risk"
    ]
}