How Do You Get a Gold Medallion Stamp?
Many legal and financial documents require a medallion signature guarantee from an institution, which serves to validate who you are, ensure you legally own the assets in question, and take responsibility for any potential fraud or misconduct that might occur during transfer.
Banks
Many banks, credit unions, and other financial institutions provide medallion signature guarantees at no or a nominal fee to their customers. This service ensures that signatures on securities transfer documents are genuine and signed with legal authority by members of a recognized Medallion program which adhere to stringent guidelines regarding identity verification and legal authority verification.
Medallion stamps are bright green signature verification marks that verify that signatures on stock power or share certificates are genuine and that any forgeries will be held accountable by their institution affixing it. Banks, credit unions and broker dealers who belong to Medallion programs can offer this service to their customers.
According to one reader, his local branches of Citibank, Wells Fargo, and HSBC only provided him with Medallion stamps if they held accounts with them; however, Bank of America offered this service even though he didn’t hold accounts there.
Credit Unions
Credit unions frequently provide medallion signature guarantees at no additional cost, especially if their account holders have an established relationship with them. This service helps protect transactions from fraud while making asset transfer simpler and safer. To offer such guarantees, financial institutions must join an accredited Medallion program and abide by stringent guidelines regarding identity verification and legal authority verification; additionally they must pay Kemark Financial Services– the administrator of the Medallion STAMP Program– a fee annually.
Medallion stamps contain an invisible security barcode and special ink which can only be read by Stamp 2000 Plus scanners used by transfer agents, as an anti-theft measure against electronic identity theft and fraud. This unique security measure guarantees that the signer is who they say they are, legally owns the assets being transferred, and accepts liability in case of forgery by accepting liability liability with financial institutions in case any forgeries occur.
Brokerages
Financial institutions accepting medallion signature guarantees (MSG), such as banks, credit unions and broker-dealers must belong to one of two medallion programs (Securities Transfer Agents Medallion Program or Stock Exchange Medallion Program for those not creative with acronyms). When you apply for one, an institution will affix your signature with an endorsement stamp containing a bar code readable by special scanners as well as prefix indicating its guarantee limit.
As part of their efforts to combat fraud and security risks, MSGs are not available to just anyone. Instead, most financial institutions will only issue one to established account holders for a small fee and often require that signers present photo ID and be U.S. citizens. A notarized signature may also serve as an alternative, although it doesn’t provide as much assurance that their signing authority matches up with that of an MSG.
Other Financial Institutions
Medallion signature guarantees are an official form of certification that verifies a signer’s identity, legal authority and ownership of assets being transferred. They are typically used when moving securities between financial institutions; the stamp and signature are insured by each respective financial institution that assumes liability in case of forgery. Because of the inherent risk involved with providing these stamps to customers or bank with them directly.
Banks, credit unions and broker dealers all may provide signature guarantees; however, in order to be recognized under the STAMP program as one, a financial institution must purchase imprinting equipment and special ink, obtain a surety bond and pay Kemark (which oversees Medallion Program), a subscription fee. The cost associated with signature guarantees may range between hundreds to thousands of dollars depending on which financial institution provides it; some institutions require them as part of processing estates and wills but this can slow the process significantly.
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