What is a Medallion Signature Guarantee?
Signature guarantees and notary stamps provide similar services in that they both verify the identity of signers on financial documents, while medallion signature guarantees take it one step further by also verifying authenticity of signature and legal authority to transfer securities.
Banks take great risks by issuing medallion signature guarantees; thus they will typically only offer them to customers they already know and trust – you will therefore need to visit one of their branches directly to obtain one.
The stamp is a symbol
If you are trading shares traded on US and Canadian stock exchanges, a Medallion Signature Guarantee stamp may be necessary. These stamps serve to verify identity when signing documents and are legally mandated statutory requirements for securities transfer. Featuring special security ink that makes them difficult to replicate, Medallion Signature Guarantee stamps can be found through banks and credit unions or through online options available today.
A medallion Signature Guarantee (MSG) stamp is used to verify the identities of people signing documents at financial institutions, guaranteeing they are taking responsibility in case of fraud or forgery. While similar in appearance, MSGs serve different purposes and require different levels of screening than notary stamps; which confirm the signer’s identity on various legal documents.
The stamp is a guarantee
Medallion stamps provide proof that an individual is who they claim they are and that their signature has not been falsified, often required when transferring securities. Issued by banks or financial institutions backed by assets of said firm, medallion stamps cannot be substituted for notary seals as these cannot be issued by notaries alone.
Financial institutions typically do not issue medallion signature guarantees to those they do not know, due to potential financial liabilities associated with providing this insurance product and confirming identity – both processes which incur costly fees for verifying individual’s identities.
Stamps feature an alpha-prefix which signifies the maximum guarantee amount, usually more than $500,000. They’re typically used for transactions of over this sum and come with green ink that makes forging impossible.
The stamp is a legal document
Medallion Signature Guarantees (MSGs) provide validation of your personal signature, verifying identity and authenticating securities or investments transfer transactions. Banks, credit unions, brokerage firms and other financial institutions that belong to a particular medallion program may offer these guarantees; their stamp contains an invisible security barcode with chemical markers which can only be read using special scanners such as Stamp 2000 Plus used by transfer agents. Each bank officer may have a limit on the assets they can guarantee per visit; call ahead before visiting.
An MSG differs from notary seal and verification processes in that both ensure the signature on documents is genuine, though both serve the same purpose: verifying identity with photo ID verification of signer identity, while an MSG goes further by validating both signature and authorizing signature verification process. Both processes serve different functions and understanding their differences can save both time and money in your process.
The stamp is a security measure
Medallion signature guarantees are special certification stamps designed to verify that a signature authorizing a transfer of securities is genuine, which may be required when selling or transferring financial assets such as shares or bonds held physically as certificates.
You can obtain a medallion signature guarantee at any bank or financial institution participating in the Medallion Program. In general, two forms of current identification will suffice; additionally, they will require evidence that proves you own the securities being transferred.
Most banks and financial institutions will not extend medallion signature guarantees to individuals who are not longstanding customers, as this exposes them to great liability in case of forgery. Stamps used to produce these documents contain barcodes and invisible security compounds to prevent copying.
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