Chelton AB conducts foreign exchange trading, which means that the company provides a discretionary management service where it carries out spot FX transactions (transactions in currencies) on behalf of its clients. Foreign exchange trading is a financial activity that banks and credit institutions may conduct by Chapter 7, Section 1, paragraph 12 of the Banking and Financing Business Act (2004:297) (“BFL”)

A license from Finansinspektionen is usually required to conduct financial activities. For certain activities, however, the law stipulates that it is sufficient if the company has been registered with Finansinspektionen. Foreign exchange trading is such an activity where it is sufficient for a company to be registered as a “financial institution” under section 2 of the Foreign Exchange and Other Financial Activities Act (1996:1006) (“LVAFV”). Foreign exchange trading under Chapter 7, Section 1, point 12 of the BFL is included in the definition of “other financial activities” under Section 1, point 2 of the LVAFV. LVAFV, i.e. such activities that may be conducted by a company that has obtained registration with the Swedish Financial Supervisory Authority under this law.

Chelton AB is registered as a financial institution with the Swedish Financial Supervisory Authority with institution number 70413. The registration can be checked in the Swedish Financial Supervisory Authority’s company register: registration link.

Chelton AB does not offer advice and is, therefore, not authorised.

There are two main types of financial advice: 1) investment advice and 2) insurance distribution (insurance brokerage). Furthermore, the Swedish Act (2003:862) on Financial Advice to Consumers (“LFRK”) contains additional rules regarding both types of advice. The advice concepts are clearly defined in law, and Chelton’s marketing of currency management services falls outside of all definitions.

Investment advice
According to Chapter 1. 4 c § of the Securities Market Act (2007:528) (“LVPM”), “investment advice” is defined as “the provision of personal recommendations to a client in respect of one or more transactions relating to financial instruments”. Thus, for investment advice to be provided, it must be “personal recommendations” relating to “financial instruments”. What constitutes a “financial instrument” is also clearly defined in Chapter 1, section 4 of the LVPM. 4 § LVPM

Buying/selling currencies Spot FX does not involve a financial instrument. Currency derivatives, on the other hand, are financial instruments, but Chelton does not work with this.

Chelton markets a currency management service that does not involve financial instruments. Therefore, it falls outside the definition of “investment advice” set out above.

Insurance distribution
According to Chapter 1, Section 1 of the Insurance Distribution Act (2018:1219) (“LFD”), insurance distribution is defined as “activities consisting of 1) advising on or proposing insurance contracts or carrying out other preparatory work before an insurance contract is concluded, 2) concluding an insurance contract, or 3) assisting in the management or performance of an insurance contract.”

Here, the key term in the definition is ‘insurance contract’. Chelton’s activities do not involve insurance contracts in any respect, so they do not constitute insurance distribution.

Financial advice to consumers
The scope of the LFRC is set out in section 1: “This Act applies to financial advice provided by a trader to a consumer which involves the investment of the consumer’s assets in financial instruments or life insurance with a savings element. However, the Act does not apply where the person providing the advice merely recommends an investment apart from those mentioned above.”

The above definition means that the LFRK applies to investment advice (financial instruments) and insurance distribution relating to life insurance with a savings element (a narrower definition than the LFD). As noted above, Chelton’s activities fall outside investment advice and insurance distribution definitions. Thus, Chelton AB does not provide “financial advice” under the LFD either.

As a financial institution, Chelton AB must comply with the regulatory requirements from the Act (2017:630) on measures against money laundering and terrorist financing and other laws and regulations in this area. This means, among other things, that Chelton AB must obtain sufficient customer knowledge before agreeing with the customer. Furthermore, Chelton AB is obliged to conduct follow-up checks continuously on its customers during customer relationships. Customer due diligence includes, among other things, identifying the customer and beneficial owner, checking against sanction lists, checking the status as a PEP, checking the origin of assets, ongoing transaction monitoring, etc.

The general audit of Chelton GmbH's trading strategies has been carried out by ARIF - Association Romande des Intermédiaires Financiers since its inception in 2016 and until the sale of Chelton GmbH in February 2024.

ARIF is a self-regulatory body approved by the Swiss Financial Market Supervisory Authority (FINMA) to supervise the financial intermediaries referred to in Article 2, 3§ of the Swiss Federal Act on Combating Money Laundering and Terrorist Financing in the Financial Sector (AMLA). FINMA also recognizes ARIF as a professional association that establishes rules of conduct for the exercise of the profession of independent asset manager within the meaning of the Swiss Federal Act on Collective Investment Schemes (CISA).

Managed accounts are difficult to audit as clients often have different risk profiles and larger amounts have different fee structures. After the sale of Chelton GmbH, our managed accounts are not audited and it is not common to audit them. The reason is simple: clients receive daily reports from the broker (Axi), which is already independent and therefore shows full transparency. Several hedge funds and fund-of-funds use our strategies together with an independent administrator. One of these hedge funds is managed by one of our directors, giving us access to the administrator IQEQ who checks all trades on a monthly basis. This fund trades with default settings, the results of which we show on our factsheets.

The Currency Sigma strategy is linked to MyFXBook and FXBlue. This is where all trading is processed and displayed. They independently verify all activity on the trading account.

Our traders have accounts with default settings, which are uploaded monthly to various alternative investment databases such as Autumn Gold, FundPeak, BarclayHedge, Formidium, Reveal-Insight, AlphaBot, RCM Alternatives, HFR, AlphaMaven, NilssonHedge, IASG, eVestment (nasdaq.com), FundBase and MorganHedge. Clients can then review the results each month and divide or multiply it by the factor they have.

Axi is regulated by the UK Financial Conduct Authority (FCA) under reference number 466201. The registration can be checked on the FCA's register of firms: registeration link.

Axi's business is to provide FX and CFD trading services to retail and institutional clients worldwide. With the license comes the FSCS - Financial Services Compensation Scheme, a guarantee of up to GBP 85,000 in the event of insolvency when you hold your money with a regulated financial firm.

Client funds transferred to Axi are, according to FCA rules, received in separate bank accounts that distinguish between the broker's working capital and clients' investments. For this, Axi uses, among others, Lloyds Bank. 
Lloyds Bank is regulated by the UK Financial Conduct Authority (FCA) under reference number 119278.
The registration can be checked in the FCA's register of firms: registration link.