How Do You Get a Medallion Stamp?
Medallion stamps provide transfer agents and financial institutions with assurances that the person seeking endorsement is who they say they are. Banks, credit unions, and brokerage firms participating in medallion programs can issue this guarantee stamp to clients seeking their endorsement.
Due to potential liability concerns, most institutions do not grant medallion stamps directly to people off the street.
Banks
Most banks, credit unions, and brokerage firms will affix medallion stamps to documents when required for asset transfers. They may charge a small fee; however, it typically exceeds what a notary would charge to attest them.
These financial institutions will only give out stamps if the person applying is a member of their institution – this means you must hold an account with them at least for some months prior to making their request. They won’t just hand it out randomly because this exposes them to huge financial liabilities should any forged stamp be used illegally.
This stamp, in vibrant green color and issued by an institution, identifies who issued it and also shows their guarantee limit by code letter. Usually attached to documents such as stock powers or certificates of stock endorsement; often required when transferring securities between firms.
Credit Unions
Before issuing a Medallion Signature Guarantee, DFCU Financial will verify certain information such as identification and legal capacity to sign for requests; additionally you will require current non-expired government issued identification as well as your statement of account showing ownership details including account number and value of securities being transferred or redeemed.
Many credit unions do not grant medallion stamps to customers who enter off of the street; rather, they require customers to become established members and “season” their accounts for an agreed-upon minimum period before issuing them a medallion stamp. Furthermore, these funds typically only issue up to a specified limit that reflects their assets or “pool” of available funds – this determination usually determines who gets one first.
Brokerage Firms
To obtain a medallion stamp, it is necessary to present yourself in person at any financial institution participating in the program – this can include banks, credit unions and brokerage firms. When applying in person you will need government issued photo ID as well as an original document which requires signature guarantee such as stock certificate, power of attorney form or transfer request form; then prove ownership and value via account statement or valuation report.
As medallion signature guarantees expose financial institutions to additional risks and liabilities, they are rarely issued freely or easily. Most banks will only grant them to long-term customers with established accounts who have held onto an account for at least an extended period. Some banks may charge a fee while others won’t. Furthermore, certain financial institutions may require deposits before issuing stamps; make sure you keep copies of all documents involved and consider shipping them securely with trackable tracking capabilities.
Other Financial Institutions
Banks, credit unions and brokerage firms all provide medallion signature guarantees; some transfer agent companies also provide this service. Since this type of stamp differs from a notary public stamp, you should check with each Guarantor directly regarding their requirements.
A medallion signature guarantee serves to verify the identity of anyone transferring securities or investments, often when selling or transferring physical certificates held by holders; it isn’t required if shares are held via broker accounts or electronically.
Many financial institutions only issue medallion signature guarantees to existing customers due to potential liability resulting from any errors made when endorsement occurs, rather than taking this risk for convenience’s sake. Occasionally though, there are banks or financial institutions willing to provide this service even without customer status – they just charge a fee.
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