How to Get a Medallion Signature Guarantee

If you are transferring securities or shares within North America, you will require a medallion signature guarantee (also referred to as a stamp, guarantee, or endorsement). This stamp certifies the signature on stock powers or certificates as authentic while accepting liability in case of forgery.

Banks

As many banks, credit unions, and financial institutions in the US offer medallion signature guarantees, it’s wise to consult their policies and procedures regarding them before trying to acquire one. Some institutions require having had an account with them for some period before offering such guarantees; check each institution for more information before you approach them about securing one.

Also, some institutions impose specific verification requirements based on the type of transfer being undertaken, for instance when changing jobs or donating securities to charity. A guarantee may be necessary when transferring your 401(k), for instance.

A medallion stamp may also be necessary when selling or transferring assets, as it verifies that the signature on the deed is authentic and authorized by its holder. Made from special security ink that’s difficult to copy, these stamps also contain barcodes and invisible security compounds that can only be read using special scanners used by companies when conducting transactions requiring one.

Brokerages

For optimal results, it is generally best to obtain a medallion signature guarantee at a bank, savings and loan association, brokerage firm or credit union that you already do business with. Such institutions will recognize your name and can compare the signature on the certificate being transferred against one they already have on file; this ensures that whoever signed it actually owns these assets legally.

Due to medallion signature guarantees being exposed to financial institutions’ significant liability, they tend to avoid offering them for anyone off the street. Instead, most only stamp documents that come from current account holders. To get this guarantee you may need to open an account with one of these banks that provides this service and allow it to season before applying. These accounts are commonly used when transferring assets after death or acting on behalf of someone else through power of attorney or executorship of an estate.

Trust Companies

Signature guarantees, or medallion stamps, provide additional assurances that those signing financial documents are who they claim they are. Banks, credit unions and other financial institutions can provide signature guarantees – these differ from notary stamps by requiring extensive identity checks and participation in the Securities Transfer Agents Medallion Program (STAMP), plus significant staff training to guarantee signature guarantees are valid.

Financial institutions tend to shy away from providing medallion signature guarantees to anyone off the street as this exposes them to considerable liability risks. Instead, they typically limit this offer only to existing customers and charge an annual subscription fee for them.

Medallion guarantees are often required when transferring securities between accounts, gifting securities to heirs or moving assets from an estate or trust. To find out whether your financial institution offers this service and the specific requirements that must be fulfilled before moving assets. It’s wise to allow sufficient time for review – any delays could prove costly!

Other Financial Institutions

Medallion signature guarantees are similar to document notarization, with one important difference: you must first be an existing customer of the bank or financial institution offering this guarantee; they do not usually extend such services to strangers off of the street due to potential liability concerns associated with fraud.

Guarantees may be obtained at banks, credit unions, brokerage firms, savings and loan associations or trust companies – usually when selling or transferring securities without using an intermediary broker.

This bright green stamp certifies that signature on a stock power or certificate as genuine and that the institution affixing it accepts responsibility for any forgeries that may later come to light. Each guarantee comes with an alpha prefix and coverage limit listed on its medallion stamp.