{
    "complex": false,
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The UBS MSCI United Kingdom IMI Socially Responsible UCITS ETF (IE00BYNQMK61) 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 underlying index. 2. Derivative Usage: While the KIID mentions the possibility of using derivatives for risk reduction, hedging, or cost efficiency, the factsheet explicitly states physical replication. The derivatives mentioned in the KIID are likely for currency hedging (EUR hedging), which is a common and transparent practice in ETFs. 3. No Leverage or Inverse Exposure: The fund does not employ leverage or inverse strategies, and there are no references to amplified returns or gearing. 4. Underlying Assets: The fund invests in equities of UK companies with strong ESG characteristics, which are liquid and transparent. 5. Risk Profile: The fund is in risk category 6 due to equity market volatility, but this is typical for equity ETFs and does not indicate complexity. 6. UCITS Compliance: The fund is UCITS-compliant, which inherently limits complexity and ensures suitability for retail investors. 7. No Complex Features: There are no capital protection mechanisms, structured products, or contingent bonds involved. The use of derivatives is minimal and transparent, primarily for currency hedging, which is a standard practice in ETFs and does not introduce significant complexity. The fund's objective is straightforward: to track the performance of the MSCI UK IMI Extended SRI Low Carbon Select 5% Issuer Capped 100% hedged to EUR Index. The KIID and factsheet provide clear and comprehensive information about the fund's strategy, risks, and costs, making it easily understandable for retail investors.",
    "confidence": 95
}