{
    "complex": false,
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The L&G Cyber Security Innovation UCITS ETF is classified as non-complex under MiFID II based on the following analysis: 1. **Replication Method**: The fund uses physical replication, investing directly in the securities represented in the Solactive Cyber Security Innovation Index. There is no mention of synthetic replication, swaps, or derivative instruments in the KIID or PRIIPs KID.2. **Leverage and Inverse Exposure**: The fund does not employ any leverage or inverse strategies. The KIID explicitly states that there is no capital guarantee or protection, and the risk profile is rated 7 (the highest risk level), but this is due to the underlying investments in cybersecurity companies, not due to leverage or derivatives.3. **Underlying Asset Complexity**: The fund invests in equity securities of global companies engaged in the cybersecurity industry. While the sector itself may be complex, the fund's investment strategy is straightforward: tracking an index of cybersecurity companies. There is no mention of complex structured products, contingent bonds, or other illiquid securities.4. **Risk Profile**: The risk rating of 7 is based on the nature of the investments (cybersecurity companies) and their risks, not on the fund's structure or use of derivatives. The risks are clearly disclosed, and the fund's strategy is transparent.5. **Costs and Charges**: The ongoing charge is 0.49%, which is typical for an ETF. There are no performance fees or complex fee structures mentioned.6. **UCITS Compliance**: The fund is UCITS-compliant, which inherently limits the use of complex strategies and derivatives. UCITS funds are subject to strict regulations that restrict the use of derivatives to simple replication or hedging purposes.7. **Additional Information from Fact Sheet**: The fact sheet confirms that the fund uses physical replication and does not mention any derivative usage beyond what is typical for efficient portfolio management. The index is designed to provide exposure to equity securities of global companies engaged in the cybersecurity industry, and the fund's portfolio is expected to closely track the index.**Conclusion**: The L&G Cyber Security Innovation UCITS ETF is classified as non-complex under MiFID II. The fund's straightforward physical replication strategy, lack of leverage or inverse exposure, and UCITS compliance all support this classification. The complexity of the underlying cybersecurity sector does not make the fund itself complex, as the fund's strategy is transparent and easily understandable.",
    "confidence": 95
}