Medallion Signature Guarantee
An medallion signature guarantee (MSG) is an official stamp which authorizes the physical sale or transfer of financial assets. When looking for one, investors should keep in mind that only certain banks and credit unions can offer them; furthermore, these institutions follow Securities and Exchange Commission guidelines when issuing them.
Relying on banks to provide medallion signature guarantees can be tricky business. Therefore, they are unlikely to grant it out without thorough research – you will have to locate a bank, credit union or brokerage firm offering this service; your local branch might be an ideal starting point, or there may even be online directories with listings of such institutions that provide this guarantee service.
Medallion signature guarantees are necessary when selling physical securities directly without using a broker, such as stocks or bonds. A medallion signature guarantee proves you own them while also enabling transfer agents to complete the sale process more quickly and smoothly. Note: Notary stamps cannot be substituted for medallion signature guarantees when selling direct.
Edward Jones does not provide medallion signature guarantees at every location, with them only available to account holders. Smaller branches may forward paperwork to larger locations for review.
HSBC Medallion Signature Guarantee (MSG) stamp is used to safeguard investments from theft and forgery. When signing the stamp, financial institutions guarantee that investors are who they claim they are, legally own assets being transferred, and accept liability in case of forgery. MSG stamps can usually be found at banks, credit unions and brokerages – these services typically charge fees.
Many financial institutions impose stringent criteria when issuing medallion stamps to customers. They typically only issue them to those they have an ongoing relationship with and require that the customer present proof of identity and legal authorization to transfer securities. They may also require them to be bank account holders before providing this stamp – this process may prove more challenging for overseas investors who require in-person visits for verification; otherwise the review could take up to five business days.
Bank of America
A medallion signature guarantee stamp serves to verify proper endorsements in transactions involving stocks and mutual funds, such as banks, credit unions, brokerage firms and trust companies. There may be an associated fee involved; medallion stamp providers are subject to regulatory oversight by the Securities and Exchange Commission.
To secure a medallion stamp, it’s necessary to visit a bank or credit union offering this service and present all relevant documentation and forms of ID. In addition, you must meet their medallion signature guarantee policy criteria.
Most banks, credit unions, and brokerage firms offer medallion signature guarantees as an added benefit for customers of these institutions. Since most don’t list their policies online, it is wise to reach out and inquire as early as possible as some banks may charge a small fee or require you to have an account first before stamping documents with their seal of approval.
Most banks, credit unions and financial institutions that offer medallion stamps will only complete this service for existing customers. You will need to present them with documentation proving your identity and authority, such as a power of attorney document, trust agreement agreement or death certificate before receiving this service. You may also be asked to sign an authorization form authorizing them to provide this service.
Stamps verify the signature authorizing asset transfers are legitimate, as well as confirm legal capacity and value of assets being transferred. Each stamp comes equipped with an alpha prefix and coverage limit to help validate transactions and document execution.
Banks and credit unions that maintain accounts can compare the signature on your certificate to their records and issue medallion guarantees; this may be a complicated process due to high risk associated with this service; Wells Fargo requires an account, while others, like HSBC, only offer it at their physical locations.