Medallion Signature Guarantee
Medallion signature guarantees are special stamps issued by financial institutions to verify that an endorsed stock power or certificate contains authentic signatures. Most financial institutions limit this service to existing customers only.
Banks, savings and loan associations, credit unions or brokerage firms typically charge fees for providing this service.
Medallion Signature Guarantees provide assurances that a signature on a document is genuine, providing similar protections as notarizations. They can also be obtained from various financial institutions like local banks and credit unions as well as brokerage firms that offer this service.
Medallion Signature Guarantees are often required when transferring securities between accounts, such as moving your 401(k) from one employer to the next or donating stocks to charity. Furthermore, Medallion Signature Guarantees may also be useful when transferring ownership of deceased estates.
Remember that Medallion Signature Guarantees only work if you already have an account with the bank in question; most banks won’t issue one to someone without an existing relationship because they would need to vouch for your identity as well as potentially become responsible if there is any fraudulent activity taking place.
An identification and ownership guarantee (medallion signature guarantee) is necessary when selling or transferring securities, as it provides proof of your identity and ownership of assets being transferred. Furthermore, this act acts as verification that you are an authorized signatory who can act on behalf of someone else. You can acquire such guarantees from banks, credit unions, or transfer agents.
Online directories may also help you locate medallion signature guarantors nearby; although these websites may charge a fee, they will provide quick and efficient information.
Most financial institutions will only offer medallion signature guarantees if you are already an existing customer, due to costs and liabilities associated with providing one to someone outside their customer base. Many institutions regard providing guarantees to non-customers as too risky of an endeavor for them.
Bank of America
Medallion Signature Guarantees (MSGs) are special stamps issued by financial institutions that certify that signatures used to transfer securities are authentic. This guarantee is often required when selling or transferring physical certificates such as stocks and bonds; typically the institution that issues this stamp charges a fee. Since such services expose financial institutions to substantial liability risks, these stamps cannot be issued easily; instead they require ongoing relationships and adequate documents verifying identity before issuing.
Typically, bank customers must obtain medallion signature guarantees in order to take advantage of them; however, in certain instances some banks offer such guarantees to non-customers as well. It is wise to call ahead before visiting to confirm they provide this service as well as inquire as to the minimum value they guarantee and three types of certifications acceptable by them.
The Medallion Signature Guarantee (MSG) is an additional form of identity verification used when selling or transferring securities or investments without using a broker. The stamp verifies both who you are and that you own what is being transferred. Furthermore, it protects transfer agents against liability due to forgery claims. Many financial institutions such as banks, credit unions, and brokerage firms provide medallion signature guarantees; many belong to the Securities Transfer Agents Medallion Program that offers this service.
Finding a bank offering this service may be challenging, but there are resources online that can assist in your search for medallion stamp providers. Be sure to find an SEC-approved signature guarantor as well as their minimum value limit which should typically be at six figures or above.