{
    "complex": false,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [
        "Limited swap usage (up to 10%) for efficient portfolio management",
        "No leverage or inverse exposure",
        "Physical replication as primary method"
    ],
    "classification": "non-complex",
    "supporting_data": "The HSBC FTSE 100 UCITS ETF is classified as non-complex under MiFID II for the following reasons: 1) It primarily uses physical replication (as confirmed in the factsheet) with only limited derivative usage (up to 10% in swaps) for efficient portfolio management, not as a core strategy. 2) There is no leverage or inverse exposure. 3) The underlying FTSE 100 Index is a straightforward equity index with no complex components. 4) The fund is UCITS-compliant and has a transparent, liquid structure. While derivatives are permitted, their usage is limited and serves portfolio management purposes rather than creating additional complexity. The risk profile (category 6) reflects the volatility of the underlying index rather than the fund's structure. The factsheet confirms physical replication as the primary method, with derivatives used only for ancillary purposes.",
    "confidence": 95
}