{
    "ucits": true,
    "type": "ETF",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "Derivative use for currency hedging, potential counterparty risk, and currency risk",
    "classification": "non-complex",
    "supporting_data": "The UBS MSCI EMU Socially Responsible UCITS ETF (LU1280300853) is a UCITS-compliant, physically replicated ETF tracking a transparent equity index. It uses derivatives (currency forwards) solely for currency hedging to reduce the impact of currency fluctuations between the fund's reference currency (GBP) and the index currency, in line with the index's hedging methodology. The use of derivatives is limited to efficient portfolio management (EPM) for hedging purposes, not for synthetic replication or to achieve the fund's investment objective. The fund does not engage in securities lending, does not use leverage beyond UCITS limits, and does not hold complex bonds or structured products. The risk profile is driven by equity market volatility and currency risk, not by complex structural features. The structure, objective, and risks are transparent and can be understood by retail investors with basic knowledge. Under MiFID II, UCITS ETFs are generally presumed non-complex unless they use derivatives integrally to the investment strategy or have features that make the product difficult to understandu2014neither of which applies here, as the derivative use is ancillary and well-disclosed[1][2]. The fund's documentation clearly explains the use of derivatives for hedging and the associated risks, supporting a non-complex classification. No evidence of embedded swaps, contingent convertible bonds, or complex indices is present. Therefore, despite the use of derivatives for hedging, the ETF remains non-complex under MiFID II rules[1][2]."
}