{
    "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 Cyber Security 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 its index, investing directly in the underlying securities. 2. While the KIID mentions that the fund may invest in financial derivative instruments (FDIs), these are not a primary strategy and appear to be used for efficient portfolio management rather than as a core investment approach. 3. There is no evidence of leverage, inverse exposure, or complex structured products in the investment strategy. 4. The fund is UCITS compliant, which generally indicates a higher level of investor protection and regulatory oversight. 5. The risk profile (rated 7) is primarily due to the nature of the investments (technology sector focus) rather than complex financial structures. 6. The fund has a clear, linear relationship to its underlying index performance. 7. There are no capital protection mechanisms or structured features that would indicate complexity. 8. The cost structure is straightforward with a single ongoing charge of 0.69% and no performance fees. While the KIID mentions potential use of derivatives, the factsheet clarifies that the replication method is 'physical - full replication,' suggesting derivatives are not a primary component of the investment strategy. The fund's complexity factors are limited to the inherent risks of investing in the cyber security sector rather than complex financial structures.",
    "confidence": 90
}