A medallion stamp is a special certification that guarantees that an authorized signature to transfer securities is authentic. You can get one from the financial institution where your accounts are housed.
When moving assets between banks or administrating the estate of an estate of deceased person, medallion guarantees may be necessary. Here are some tips on where you can locate one:
Banks
Medallion signature guarantees are stamps that certify that the signature on a stock power or certificate is genuine, which securities transfer agents require before permitting an owner to sell or transfer shares. Banks and other financial institutions typically provide this service.
Due to their significant liability, banks or other institutions will typically only grant medallion signature guarantees to existing customers, taking responsibility for any related forgery transactions.
An in-person visit to a bank may be required; an authorized signer must present current, non-expired photo identification; the bank will review their ownership documents and legal authority to sign. They also verify whether their account holds enough funds for covering transaction value. Typically, medallion signature guarantees come at minimal costs but can save our clients both time and hassle when administrating estates.
Brokerage Firms
Medallion stamps are required when transferring stocks, bonds or mutual funds between accounts, acting as certificates that verify who you are and authorize you to endorse these transactions. You can get this seal at banks, brokerage firms, trust companies, savings associations or credit unions that participate in one of three Medallion programs.
Medallion Signature Guarantees expose financial institutions to certain amounts of liability, so they don’t distribute them liberally or simply to anyone. Most often they are issued as customer benefits at banks offering them, or by law firms to clients banking with said bank. A medallion signature guarantee stamp will remain valid for two years after being stamped; its use should only apply on documents signed by notaries themselves.
Transfer Agents
As either an individual investor or corporate transfer agent, there are various options for you to get your medallion signature guaranteed. Banks, credit unions and brokerage firms that participate in STAMP (the Securities Transfer Agents Medallion Program) offer these guarantees.
Bank officers verify the identity and legal authority of signers by inspecting their photo ID and stamping them with special security ink.
Medallion signature guarantees may expose financial institutions to liability, so they do not hand them out freely or easily. One reader of NerdWallet’s Delta forum noted that his local banks such as Citibank, Wells Fargo and HSBC only offered these guarantees to existing account customers with existing accounts; other banks may offer medallion signature guarantee services at an additional fee – you can easily find out which banks provide this service by searching online.
Other Financial Institutions
If you are moving investments or giving securities as gifts, obtaining a Medallion Signature Guarantee could reduce liability of transfer agents in case the signature turns out to be faked. Banks, credit unions, trust companies, and savings associations typically offer them; however they must first be certified through one of the Medallion programs before you can obtain one.
The most cost-effective place to obtain a medallion signature guarantee is from an institution with which you already do business, since that will limit their liability when issuing such guarantees to someone not part of their customer base. Banks and other financial institutions typically maintain directories listing providers who offer medallion signature guarantees; there may also be websites providing this information – you can search directly by name or use services like MSG Lookup to locate service providers nearby.
