What Is a Medallion Signature Guarantee?
A medallion signature guarantee is a special certification, provided by approved financial institutions, that verifies the authenticity of a signature on documents that transfer ownership of securities (for example, stock or bond certificates). The guarantee protects issuers and transfer agents against unauthorized transfers by tying the signature to an institution that agrees to accept financial liability if the signature proves fraudulent.
Key takeaways
– A medallion signature guarantee is typically required to transfer or re-register physical securities (stock or bond certificates) or to process certain account changes when the issuer or transfer agent wants extra protection.
– Only institutions that participate in one of three medallion programs (STAMP, SEMP, MSP) can issue valid medallion guarantees.
– Many banks, credit unions and broker-dealers offer the service but not every branch can apply the stamp; call ahead.
– The guarantee is valid on the date it’s stamped/signed and is intended for the specific transaction and documents presented at that time.
– Fees vary widely (often $0 for long-standing customers; commonly $25–$100 for others), and institutions apply strict identity and relationship checks because they assume liability.
Understanding the medallion signature guarantee process
1. Why it exists
– Transfer agents and issuers require assurance that a signature authorizing a securities transfer is genuine. The medallion program links that assurance to a financial institution that has underwriting limits for the guarantee.
2. Who can issue it
– Only members of one of three recognized programs: Securities Transfer Agents Medallion Program (STAMP), Stock Exchanges Medallion Program (SEMP), and New York Stock Exchange Medallion Signature Program (MSP). Each program sets underwriting limits and standards.
3. What the stamp does
– The stamp (and accompanying handwritten signature and date) certifies the signer’s identity and that the guarantor will be liable within set limits if the signature is fraudulent.
4. Typical timeline
– If the issuing branch has an on-site authorized agent and the documents are in order, the stamp can be applied the same day. Otherwise, documents may need to be sent for review and return in 2–5 business days (or longer if there are complications).
Top situations requiring a medallion signature guarantee
– Transferring or selling physical stock certificates (re-registering ownership).
– Gifting securities to another person.
– Transferring securities out of a deceased owner’s name (estate transfers) or otherwise handling beneficiaries’ claims.
– Changing registration on securities when certificates are in paper form.
– Certain corporate actions where an issuer or transfer agent requests extra verification.
– Using a power of attorney to move securities (many transfer agents require both a POA and a medallion guarantee).
The role of medallion signature guarantees in share certificate transactions
– Share certificates are physical documents that evidence ownership of shares. Transfer agents and issuing companies generally prefer electronic records today, but when paper certificates are used the transfer agent may require a medallion guarantee on any change of ownership to prevent fraud.
– If a certificate is lost, stolen, or damaged, transfer agents will often require:
– An indemnity bond, an affidavit of loss, or other documentation, and
– A medallion signature guarantee to confirm the applicant’s identity before issuing a replacement certificate.
– The medallion guarantee is transaction-specific; it confirms the signature on the paperwork presented to the transfer agent and helps satisfy the issuer’s risk controls.
Which banks and institutions offer medallion signature guarantees?
– Many large U.S. banks, credit unions, and broker-dealers participate in the medallion programs, including (but not limited to) Bank of America, Chase, Wells Fargo, and many national and community credit unions and brokerages. Not every branch or office of a participating institution can apply the stamp — the branch must have an authorized officer on site.
– To locate a guarantor, use the official Medallion Signature Guarantee program lookup (or call your bank or brokerage). If your broker holds your securities in “street name,” transfers are typically handled without a medallion because the broker controls the account electronically.
How long is a medallion stamp good for?
– The medallion stamp is valid on the date it is signed. It is meant to certify the signature for the specific transaction and documents presented at that time. Transfer agents may reject stamps that are dated too far in the past or that do not match the presented paperwork, so plan to have the stamp applied immediately prior to submission.
How much does it cost to get a medallion signature guarantee?
– Costs vary by institution and the nature of the relationship:
– Long-standing customers of a bank or brokerage may receive the service for free.
– Typical fees for customers without a deep relationship are often in the range of $25–$100; some institutions charge more depending on underwriting limits or the complexity/value of the transaction.
– Some guarantors set fees based on the dollar value of the securities being transferred (higher-value transactions can carry higher fees).
– Always ask the institution about fees before submitting paperwork.
Why is a medallion signature guarantee so hard to get?
– The guarantor assumes potential liability if they certify a fraudulent signature, so they apply strict identity, account-history and documentation checks.
– Institutions may have underwriting limits and internal controls that restrict how readily they will stamp documents.
– Many branches do not maintain on-site medallion stamps or trained staff, so even if the bank participates in the program you may need an appointment or must send documents to a central office.
– Transfer agents are increasingly cautious (and regulators emphasize anti-fraud safeguards), so institutions err on the side of conservatism.
Practical step-by-step guide to getting a medallion signature guarantee
1. Determine whether you actually need one
– Ask the transfer agent or the issuing company whether a medallion signature guarantee is required, or whether a broker-mediated electronic transfer is possible instead.
2. Locate an eligible guarantor
– Contact your bank, credit union, or brokerage to see if they participate in STAMP/SEMP/MSP and whether the branch has an authorized medallion agent; use the Medallion Signature Guarantee lookup tools if needed.
3. Call ahead and make an appointment
– Not every branch or office can stamp documents. Confirm availability, fees, and required documents before you go.
4. Prepare required documents
– Typically you’ll need:
– The original documents requiring the signature (stock certificate(s), assignment forms, letters of transmittal, etc.).
– Government-issued photo ID (driver’s license, passport).
– Proof of account relationship with the guarantor (account numbers, recent statements) if you’re an existing customer.
– If acting under power of attorney, present the executed POA and any IDs or additional documentation the institution requires.
– For deceased owners: death certificate, letters testamentary or similar estate documents, or forms requested by the transfer agent.
5. Visit the guarantor
– Sign the document in front of the authorized officer/agent (they must witness the signature).
– The agent will review identity, account history, the securities involved, and underwriting limits, then apply the medallion stamp and sign/initial as required.
6. Submit the stamped documents to the transfer agent or issuing company
– Send via the method specified (some require overnight mail with tracking). Keep copies and proof of mailing.
7. Expect possible follow-up
– If the transfer agent identifies problems, they may request additional documentation; be prepared for a 2–5 business day institutional review or longer if issues arise.
Tips to avoid delays and rejection
– Call the transfer agent or issuing company first to confirm exactly what they require.
– Call the bank/broker ahead to confirm the branch can issue the stamp, what documents to bring, and whether there’s a fee.
– Don’t sign the transfer paperwork beforehand — the guarantor will typically require you to sign in their presence.
– Bring originals (not copies) of certificates and IDs.
– Use an account-holding institution when possible — they’re more likely to stamp without lengthy additional verification.
– If you need a replacement certificate for a lost or stolen one, check the issuer’s process early because it often involves indemnity bonds or affidavits in addition to the medallion.
– Consider leaving the securities in electronic form (broker-managed) to avoid the medallion requirement when possible.
Alternatives and related notes
– If your securities are held electronically by a broker (in “street name”), you usually don’t need a medallion stamp; the broker can transfer the holdings electronically.
– A notary public is not a substitute for a medallion signature guarantee. A notary verifies identity and witness signatures for general legal documents, but does not assume financial liability for securities transfers.
– Corporate medallions and medallion signature guarantees are related concepts but can have different applications (corporate medallions typically authorize corporate-level actions).
The bottom line
A medallion signature guarantee is a specialized fraud-prevention tool used primarily for paper securities transfers. It requires the signer to appear before an authorized guarantor that participates in a medallion program and that is willing to assume limited financial liability for the certification. Because issuers and transfer agents want strong protection against unauthorized transfers, guarantors apply strict identity and relationship checks and may charge a fee. If you anticipate needing a medallion, plan ahead: confirm requirements with the transfer agent, contact your bank or broker to find an authorized branch, and bring the required documents.
Sources and further reading
– U.S. Securities and Exchange Commission, “Medallion Signature Guarantees: Preventing the Unauthorized Transfer of Securities.” https://www.sec.gov/news/press-release/2018-21
– Bank of America, “Medallion Signature Guarantee.” https://www.bankofamerica.com/relationship-management/medallion-signature-guarantee/
– Medallion Signature Guarantee website (program lookup). https://medallionguarantee.com/lookup/
– Notary / Notary Trainer, “The Difference Between a Medallion Signature Guarantee Stamp and a Notary.” https://www.notary.org/medallion-signature-guarantee
– Financial Industry Regulatory Authority (FINRA), “Stocks: Types.” https://www.finra.org/investors/learn-to-invest/types-investments/stocks
– U.S. Securities and Exchange Commission, “Lost or Stolen Stock Certificates.” https://www.sec.gov/reportspubs/investor-publications/investorpubsloststockhtm.html
If you’d like, I can:
– Look up medallion-capable branches near you (city/state or ZIP required).
– Draft a checklist you can print and take to the bank.
– Walk through the replacement process for a lost or stolen stock certificate for a specific issuer.