{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The Franklin FTSE Asia ex China ex Japan UCITS ETF is classified as non-complex under MiFID II for the following reasons: 1. Physical Replication: The fund uses physical replication (full replication) as confirmed in the factsheet, meaning it directly holds the underlying securities of the index rather than using synthetic methods. 2. No Leverage or Inverse Exposure: There is no mention of leverage, inverse strategies, or amplified returns in the KIID or factsheet. 3. Minimal Derivative Use: While the KIID mentions that derivatives may be used for hedging and efficient portfolio management, the factsheet clarifies that the fund does not use swaps or synthetic replication. 4. Transparent Underlying Assets: The fund invests in large and mid-cap equities in Asia (excluding China and Japan), which are liquid and transparent securities. 5. Risk Profile: The risk profile is clearly communicated as medium to high, typical for equity ETFs, and there are no complex structured features or capital protection mechanisms. 6. UCITS Compliance: The fund is UCITS-compliant, which inherently imposes strict transparency and liquidity requirements, further supporting its non-complex classification.",
    "confidence": 95
}