{
    "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 GBP Corporate Bond Screened UCITS ETF is classified as non-complex under MiFID II based on the following analysis: 1. Replication Method: The fund uses physical replication with optimised sampling, as confirmed in both the KIID and fact sheet. There is no mention of synthetic replication or swap agreements. 2. Derivative Usage: While the KIID mentions the possibility of using financial derivative instruments (FDIs), the fact sheet explicitly states 'Physical - optimised' replication. The derivatives mentioned in the KIID appear to be for efficient portfolio management rather than core strategy. 3. Leverage: There is no mention of leverage, inverse exposure, or amplified returns in any of the documents. 4. Underlying Assets: The fund invests in investment-grade corporate bonds, which are relatively straightforward and liquid. 5. Risk Profile: The fund is rated 4/7 on the risk scale, which is moderate but not high. The risks disclosed are typical for bond funds (interest rate risk, credit risk, liquidity risk). 6. Costs: The ongoing charge is 0.09%, which is low and doesn't indicate complexity. 7. UCITS Compliance: The fund is UCITS-compliant, which inherently limits complexity. The fact sheet confirms this status. 8. Counterparty Risk: While counterparty risk is mentioned, it's standard for bond funds and doesn't appear to be a significant factor here. The fund's assets are held with a major custodian (BNY Mellon). The only potential complexity factor is the use of derivatives for efficient portfolio management, but this alone doesn't trigger a complex classification under MiFID II. The fund's straightforward bond investment strategy, physical replication method, and moderate risk profile all support a non-complex classification.",
    "confidence": 90
}