{
    "fund_name": "UBS MSCI United Kingdom UCITS ETF",
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Derivative usage for replication",
        "Counterparty risk from OTC derivatives"
    ],
    "classification": "complex",
    "supporting_data": "The ETF primarily uses physical replication but also employs derivatives, particularly OTC derivatives, to achieve its investment objective when direct investment is impractical. This introduces counterparty risk, which is a key complexity indicator under MiFID II. The KIID explicitly mentions the use of derivatives and the associated risks, including potential losses due to counterparty failure. While the fund is UCITS-compliant and predominantly uses physical replication, the use of derivatives for purposes beyond efficient portfolio management (EPM) and the explicit mention of counterparty risk suggest a level of complexity that may not be easily understood by retail investors.",
    "confidence": 85,
    "risk_level": 6,
    "counterparty_risk": true,
    "benchmark_complexity": "low",
    "liquidity_risk": "low",
    "additional_notes": "The ETF's risk level is rated at 6, indicating high volatility, which aligns with the complexity assessment. The use of derivatives, even if limited, introduces elements that require a deeper understanding of financial instruments and their associated risks. The fund's documentation does not indicate the use of leverage or inverse strategies, but the presence of OTC derivatives and counterparty risk is sufficient to classify it as complex under MiFID II."
}