{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Currency hedging using FX forwards",
        "ESG screening complexity",
        "Potential counterparty risk from derivatives"
    ],
    "classification": "non-complex",
    "supporting_data": "The iShares MSCI World SRI UCITS ETF GBP Hedged (Dist) is primarily a physically replicated ETF that tracks the MSCI World SRI Select Reduced Fossil Fuel Index. While it uses financial derivative instruments (FDIs) for currency hedging via FX forward contracts, this is a common practice in hedged ETFs and does not introduce significant complexity. The ETF's main complexity factors are its ESG screening methodology and potential counterparty risk from derivatives, but these do not rise to the level of making it a 'complex' product under MiFID II. The fund's risk profile (rated 6) is primarily driven by equity market risk, which is typical for equity ETFs. The use of derivatives is limited to hedging and does not involve leverage, inverse exposure, or synthetic replication. The fund's physical replication method and straightforward index-tracking objective align with non-complex classification.",
    "confidence": 90
}