Medallion signature guarantees are necessary when it comes to transferring certain paper securities, but can often be tediously laborious and cumbersome; financial institutions provide this service at a fee.
Medallion-eligible banks include commercial banks, trust companies, savings associations, credit unions and broker-dealers that participate in a Medallion program.
Bank of America
Bank of America stands out amongst other institutions by offering medallion signature guarantees, which verify the identity of anyone signing documents used to authenticate securities transfers and reduce liability exposure for transfer agents. Banks typically only provide this service directly to their customers as its verification requires someone coming in person and verifying their identity.
Transferring securities between accounts often necessitates this service, such as moving your 401(k) from one employer to the next, giving stocks as gifts or transferring ownership after someone passes away. Most banks require photo identification and proof of your identity before issuing their medallion guarantee stamp on your document.
Wells Fargo stands out among banks by offering medallion stamps – an invaluable service that allows individuals to transfer securities held either in their name or street name. This service can be particularly helpful when transitioning between jobs, transferring assets from an estate, or giving securities as gifts.
Bank policies regarding this service differ depending on which branch you visit; to make sure someone can guarantee this transaction before arriving there it is best to call ahead.
Due to the risks and liabilities involved, financial institutions tend to avoid providing medallion signature guarantees for non-customers; however, some will do so for a fee; usually these fees are minimal and typically require that you have been an existing customer of their bank for some time prior to seeking this service.
HSBC Bank USA
Medallion signature guarantees are most often needed when transferring securities – this could involve changing jobs, consolidating 401(k) accounts or giving stock as gifts. Individuals typically need this guarantee from their bank, credit union or broker dealer in order to complete the transfer successfully.
To obtain a medallion stamp, it is necessary to visit your bank, credit union or brokerage firm with documentation verifying ownership of assets you wish to transfer. This process may be time consuming – particularly for investors residing overseas.
Financial institutions looking to offer medallion services must fulfill stringent standards established by the Securities Transfer Association in order to operate successfully. They must possess specific medallion imprinting equipment as well as surety bond coverage for fraud losses, while being part of the Medallion Program.
Medallion signature guarantees are stamps designed to make it more difficult for thieves to transfer securities, and are available from banks, credit unions and brokerage firms. However, in order to get one you must visit the institution in person and present documents proving your identity and ownership of securities being transferred.
Medallion signature guarantees expose financial institutions to considerable risks and liabilities, so they don’t issue them freely to just anyone. They typically are only provided at a nominal fee to long-established customers with excellent standing; some institutions even verify your identity before providing you a medallion signature guarantee; some even set limits on how much assets can be insured under such policies.
Banks typically only provide medallion stamps to customers that hold accounts with them; one reader reported that Citibank, Wells Fargo and HSBC refused this service but Bank of America would provide it even without an account;
Attaining a medallion signature guarantee requires visiting your bank, credit union, or brokerage firm in person. This document serves to validate your identity, signature and legal right to transfer securities – it’s often needed when selling or transferring physical stock certificates, bond forms or IRA distribution paperwork.
Some local banks and credit unions may not provide this service, so you should look for larger institutions who do. Also check with local brokers and law firms if they provide medallion signature guarantees.