{
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": "None",
    "classification": "non-complex",
    "supporting_data": "The iShares MSCI World Quality Factor ESG USD (Acc) is a UCITS ETF, which is automatically classified as non-complex under MiFID II Article 25(4)(a)(iv), unless it is a structured UCITS or uses derivatives in a way that introduces complexity beyond efficient portfolio management[1]. The fund's objective is to track the MSCI World Quality ESG Reduced Carbon Target Select Index using physical replication, holding the underlying equities in similar proportions to the index. While the fund may use financial derivative instruments (FDIs) for direct investment purposes, the KID does not indicate that derivatives are central to the investment strategy or that they introduce significant counterparty, collateral, or structural risks that would be difficult for a retail investor to understand. Securities lending is disclosed as a secondary activity, managed within UCITS rules, and does not dominate the risk profile. There is no evidence of significant leverage, embedded derivatives, or complex features such as contingent convertible bonds, swaps, or complex indices. The index methodology is transparent, and the fund's structure and risks (market volatility, tracking error) are straightforward and typical of a passive equity ETF. Therefore, the ETF meets all criteria for non-complex classification under MiFID II[1][2]."
}