{
    "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 L&G Clean Water UCITS ETF is classified as non-complex under MiFID II regulations. The primary reasons for this classification are: 1) The fund uses physical replication to track the Solactive Clean Water Index NTR, directly investing in the underlying securities; 2) While the KIID mentions the possibility of using financial derivative instruments (FDIs), the factsheet clarifies that the replication method is physical full replication; 3) There is no evidence of leverage, inverse strategies, or complex structured products; 4) The fund is UCITS compliant, which generally indicates a higher level of investor protection and regulatory oversight; 5) The risk profile, while rated 6 out of 7, is primarily due to the nature of the underlying investments (small and medium-sized companies) rather than complex financial structures; 6) The fund's objective and strategy are straightforward and focused on tracking a specific index of clean water companies. The mention of FDIs in the KIID appears to be a standard disclosure rather than an indication of actual usage for anything beyond potential efficient portfolio management, which does not trigger complexity under MiFID II.",
    "confidence": 90
}