What is a Medallion Stamp?
A medallion stamp is a special certification seal used to verify the signature on a stock certificate endorsement or power of attorney document as being authentic, usually during transfers involving physical certificates.
Banks offering medallion services typically limit them to their existing customers and may charge a minimal fee for these services.
Obtaining a Medallion Signature Guarantee
Medallion Signature Guarantees (MSGs) are special stamps used by financial institutions that certify the signature on documents authorizing the transfer of securities are genuine. Financial institutions usually require these MSGs when transferring physical certificates of securities like stocks and bonds between owners; it may be required when giving securities away as gifts, donating them to charity, or passing ownership due to death.
Most banks, savings and loan associations, credit unions and brokerage firms provide this service. However, due to potential exposure for financial liability reasons they tend to only offer it to existing customers of the institution.
To obtain a medallion signature, it’s necessary to meet with an associate at your financial institution and present all of the relevant paperwork – this includes providing valid government ID cards, stamped documents and any additional requirements specific to your transaction. Be sure to obtain a comprehensive list of requirements in advance in order to avoid delays and extra expenses.
What Banks Offer a Medallion Signature Guarantee
Medallion stamps are sought-after security measures used to verify signature authenticity on securities transfer documents and protect signature guarantors against potential fraud or forgery, making these stamps highly sought-after.
Due to their cost and liability implications, banks tend to avoid providing stamps to anyone except existing customers. One reader reported that his local Citibank, Wells Fargo and HSBC branches would only issue him one if he held accounts at each institution.
Credit unions, savings banks and broker dealers that participate in medallion programs also provide this service for their members. DFCU Financial, for example, will only give out stamps to members in good standing with documentation such as power of attorney documents or death certificates to prove they can sign on behalf of another estate. Each medallion stamp features an alphanumeric prefix indicating its maximum guarantee amount.
Getting a Medallion Signature Guarantee Without an Account
Banks and financial institutions that offer medallion signature guarantees typically limit them to their existing customers, as these guarantees expose the guarantor institution to liability. Therefore, there’s little incentive for them to offer these guarantees to people outside their financial services programs.
Banks, credit unions and broker dealers that participate in the Securities Transfer Agents Medallion Program (or STAMP for short) offer medallion signature guarantees on stock transfer forms near where you sign them; bank officers will stamp the guarantee with their seal near the signature area and sign their name over it to prevent unwarranted share transfers.
If your bank does not offer a medallion signature guarantee, consider contacting the brokerage that you plan to transfer your shares to. They may be able to provide one from another bank at an affordable fee.
Getting a Medallion Signature Guarantee Outside of the U.S.
Individuals outside of the US and Canada often find it challenging to acquire a medallion signature guarantee, due to banks being unwilling to offer this service for free due to potential liabilities that it creates for themselves. Instead, most institutions only provide this service for existing clients of the institution.
This service verifies your signature is valid, you are the rightful owner of securities being transferred and have legal capacity to sign documents involving these transfers. In order to take advantage of this program, visit any bank, credit union or broker dealer participating in it.
Institutions should be able to review your documents, such as current, non-expired government ID. Other documents required could include letters of intent and current statements from accounts holding securities; additionally if applicable a power of attorney or death certificate may also be needed. Once reviewed by bank personnel they will stamp and certify your transfer documents using medallion signature guarantees.
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