{
    "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 UBS Factor MSCI USA Quality Screened UCITS ETF (hGBP dis) is classified as non-complex under MiFID II based on the following analysis: 1. Replication Method: The fund uses physical replication (full replication) as confirmed in the factsheet, meaning it directly invests in the securities of the MSCI USA Quality Advanced Target Select 100% Hedged to GBP Index. 2. Derivative Usage: While the KIID mentions the possibility of using derivatives for hedging currency exposure (GBP hedging), this is standard practice for currency-hedged ETFs and does not indicate complex derivative strategies. The factsheet confirms no swap usage for replication. 3. Leverage/Inverse Exposure: The fund has no leverage or inverse exposure, and the index it tracks is a standard equity index. 4. Underlying Assets: The fund invests in large and mid-cap US equities, which are liquid and transparent. 5. Risk Profile: The fund is in risk category 6 (high volatility), but this is typical for equity funds and does not indicate complexity. 6. UCITS Compliance: The fund is UCITS-compliant, which inherently limits complexity. 7. No Complex Features: There are no capital protection mechanisms, structured products, or contingent bonds involved. The only potential complexity factor is the currency hedging via derivatives, but this is standard for hedged ETFs and does not trigger a complex classification under MiFID II.",
    "confidence": 95
}