{
    "ucits": true,
    "type": "ETF",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "active",
    "complex_factors": "Derivatives use for investment and efficient portfolio management; active management with factor exposures; securities lending up to 30%",
    "classification": "complex",
    "supporting_data": "The HSBC PLUS World Equity Quant Active UCITS ETF is a UCITS-compliant ETF, actively managed rather than passively tracking an index. It invests primarily in shares of companies in developed markets and may invest up to 10% in other funds. The fund uses derivatives both for efficient portfolio management and for investment purposes, which introduces complexity beyond limited EPM use. The fund also engages in securities lending up to 30% of assets, which adds counterparty risk. The fund does not use leverage beyond UCITS limits. The replication method is active management, not physical or synthetic replication of an index. The fund's risk profile is high (category 6/7), reflecting market volatility and derivative risks including counterparty risk. According to MiFID II Article 25(4)(a)(iv) and Article 57 of the Delegated Regulation, UCITS ETFs are generally non-complex unless they embed derivatives or structured products that alter risk profiles or require advanced understanding. The use of derivatives for investment purposes and active management with factor exposures means the ETF does not meet the criteria for non-complex instruments under Article 57, which excludes instruments embedding derivatives or with complex structures. Therefore, this ETF is classified as complex under MiFID II and requires an appropriateness assessment for retail investors. This aligns with ESMA guidance that structured or synthetic UCITS ETFs or those with significant derivative use are complex. The fund's transparency and information availability are adequate, but the complexity arises from the investment strategy and derivative use, which are not straightforward for retail investors to understand without advanced knowledge."
}