{
    "ucits": true,
    "type": "ETF",
    "derivatives": false,
    "swaps": false,
    "leverage": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The HSBC MSCI AC Far East ex Japan UCITS ETF is a UCITS-compliant ETF, which under MiFID II is generally presumed non-complex due to the strict regulatory framework governing UCITS funds[1]. The ETF aims to physically replicate the MSCI AC Far East ex Japan Index by investing in shares of companies in the index, which supports a non-complex classification as physical replication is transparent and straightforward for retail investors to understand[2].The ETF may use derivatives only for efficient portfolio management (EPM) purposes, such as managing risk and costs, with derivative exposure not expected to exceed 5% of assets, which is limited and typical for EPM use; thus, derivatives are not integral to the investment objective and do not trigger complexity under MiFID II rules[2].There is no indication of synthetic replication or embedded derivatives such as structured products or options, which would automatically render the ETF complex[2].Securities lending is used but limited to a maximum of 25-30% of assets, managed under UCITS rules with collateral requirements, which does not automatically make the ETF complex[2].There is no significant leverage beyond UCITS limits; leverage through derivatives is minimal and assessed under derivative use, which here is limited and for EPM[2].The underlying index is a transparent, well-documented equity index, supporting non-complexity[2].The risk profile is high (category 6) due to market volatility and emerging markets exposure, but market risk alone does not make the ETF complex under MiFID II[2].Based on the MiFID II Article 57 criteria and ESMA guidelines, this ETF meets the conditions for non-complex instruments: it does not embed derivatives integral to the strategy, uses physical replication, has transparent and frequent pricing, no excessive liability beyond investment cost, no complex clauses altering risk, and provides comprehensive, understandable information[2][3].Therefore, the ETF is classified as non-complex under MiFID II, and no appropriateness assessment or comprehension alert is required for retail investors."
}