How to Obtain a Medallion Signature Guarantee

Quick answer

• A Medallion Signature Guarantee is a stamp from an authorized financial institution that verifies the authenticity of a signature on certain financial documents, typically for stock transfers.
• You usually need one when transferring securities, especially when the transfer agent requires it to protect against fraud.
• Most often, you’ll get one from your bank or brokerage firm if they are participants in the Medallion Signature Program.
• You’ll need to present valid photo identification and sign the document in front of the authorized guarantor.
• There might be a small fee, or it could be a free service for established customers.
• Not all financial institutions offer this service; it’s limited to those that are members of the Securities Transfer Agents Medallion Program (STAMP), the New York Stock Exchange Medallion Signature Program (NYSE), or the Stock Exchange Medallion Program (SEMP).

Who this is for

• Individuals who are transferring ownership of securities, such as stocks or bonds.
• Those who have received instructions from a transfer agent or financial institution requiring this specific type of guarantee.
• Investors who need to move assets between accounts or sell securities where a Medallion Signature is mandated for validation.

What to check first (before you act)

Goal and timeline

Before you start the process of obtaining a Medallion Signature Guarantee, clearly define why you need it and when the document must be submitted. Are you gifting shares, selling them, or transferring them to an estate? Understanding the urgency will help you prioritize which institutions to contact and how quickly you need to act.

Current cash flow

While obtaining a Medallion Signature Guarantee itself usually has a minimal or no direct cost, the underlying transaction it facilitates might involve fees or taxes. Ensure your current cash flow can accommodate any associated costs, such as transfer fees, brokerage commissions, or potential capital gains taxes, that arise from the security transfer.

Emergency fund or safety buffer

A robust emergency fund is crucial for financial stability. While not directly related to the guarantee itself, the need for a Medallion Signature Guarantee often arises during significant financial events like estate settlements or large asset transfers. Having a safety net ensures these events don’t derail your day-to-day finances.

Debt and interest rates

If the reason for transferring securities involves paying off debt, understand the interest rates on that debt. A Medallion Signature Guarantee is a tool to facilitate a transaction; the financial wisdom of that transaction depends on your overall debt situation and whether the transfer helps improve your financial standing by reducing high-interest debt.

Credit impact

Obtaining a Medallion Signature Guarantee does not directly impact your credit score. However, the financial transaction that requires it—such as selling securities to pay off a loan—could indirectly affect your credit if not managed properly. For example, selling investments to cover a credit card bill is different from selling them to pay off a mortgage.

Step-by-step (how do I get a medallion signature)

1. Identify the requirement: Confirm that a Medallion Signature Guarantee is indeed what you need. This is typically specified by the transfer agent or the entity facilitating the transaction.

• What “good” looks like: You have a clear instruction or document stating the necessity of a Medallion Signature Guarantee.
• Common mistake and how to avoid it: Assuming any notary stamp is sufficient. Avoid this by carefully reading all instructions from the transfer agent or financial institution.

2. Locate participating institutions: Find out which financial institutions in your area are authorized to provide Medallion Signature Guarantees. These are typically banks and brokerage firms that are members of the Securities Transfer Agents Medallion Program (STAMP), NYSE Medallion Signature Program (NYSE), or Stock Exchange Medallion Program (SEMP).

• What “good” looks like: You have a list of potential banks or brokerage firms that offer the service.
• Common mistake and how to avoid it: Going to a bank or credit union that doesn’t participate. Avoid this by checking the institution’s website or calling ahead to confirm they are authorized.

3. Gather necessary documents: Prepare your identification and the document requiring the guarantee. You’ll typically need a valid government-issued photo ID (like a driver’s license or passport) and the specific form or stock certificate you need signed.

• What “good” looks like: You have your ID and the correct document ready.
• Common mistake and how to avoid it: Bringing expired or incorrect identification. Avoid this by verifying the acceptable forms of ID with the institution beforehand.

4. Contact your bank or brokerage: If you have an existing relationship with a bank or brokerage firm that participates, contact them first. They may offer the service for free or at a reduced rate to established customers.

• What “good” looks like: You’ve spoken to a representative who confirms they can assist you.
• Common mistake and how to avoid it: Assuming your bank automatically offers it without asking. Avoid this by proactively inquiring about their Medallion Signature Guarantee services.

5. Visit the institution in person: You must sign the document in the presence of an authorized guarantor. This is a critical step for the validity of the guarantee.

• What “good” looks like: You are in a meeting with an authorized representative and ready to sign.
• Common mistake and how to avoid it: Trying to get someone else to sign for you or signing before arriving. Avoid this by understanding that the signature must be witnessed.

6. Sign the document: Carefully sign the document exactly as your name appears on your identification and the document itself. The guarantor will compare your signature to your ID.

• What “good” looks like: Your signature is clear, legible, and matches your identification.
• Common mistake and how to avoid it: Signing carelessly or differently than your ID. Avoid this by taking your time and ensuring consistency.

7. Receive the guarantee stamp: The authorized representative will apply the Medallion Signature Guarantee stamp to the document, which includes their signature and program details.

• What “good” looks like: The stamp is clearly affixed to the correct section of your document.
• Common mistake and how to avoid it: Not checking the stamp for completeness. Avoid this by verifying that all required information (guarantor’s signature, program name, date) is present.

8. Review the stamped document: Before leaving, examine the document to ensure the stamp is correctly applied and all information is legible.

• What “good” looks like: The stamp is properly placed and easy to read.
• Common mistake and how to avoid it: Not double-checking the document immediately. Avoid this by giving it a thorough look before departing.

9. Submit the document: Send the document with the Medallion Signature Guarantee to the transfer agent or the entity that requested it.

• What “good” looks like: The document is mailed or delivered according to the specified instructions.
• Common mistake and how to avoid it: Sending it to the wrong address or using an untraceable shipping method. Avoid this by confirming the correct submission address and considering trackable mail.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Using a notary public instead of a guarantor	The transfer agent will reject the document, delaying or invalidating the transaction.	Ensure the stamp is a Medallion Signature Guarantee, not just a notary seal.
Not signing in front of the guarantor	The guarantee is invalid, and the transfer agent will likely reject the document.	Always sign the document only when you are with the authorized guarantor.
Using expired or incorrect identification	You will be unable to get the guarantee, causing delays and potential missed deadlines for your transaction.	Carry valid, government-issued photo identification (e.g., driver’s license, passport).
Signing the document incorrectly	Mismatched signatures can lead to rejection, especially if your signature doesn’t match your ID or other account documentation.	Sign exactly as your name appears on the document and your ID.
Not verifying the institution’s participation	You waste time and effort going to an unauthorized location, leading to delays.	Call ahead or check the institution’s website to confirm they are a member of STAMP, NYSE, or SEMP.
Assuming the service is free	You might be surprised by a fee, especially if you’re not a long-time customer, potentially impacting your budget for the transaction.	Inquire about any fees upfront. Some institutions offer it free for established clients.
Not understanding the fee structure	You might pay more than necessary or get charged for services you didn’t expect.	Clarify if there’s a per-guarantee fee, a per-signature fee, or a flat rate.
Forgetting to get the document stamped	The signature itself is not enough; the stamp is the validation the transfer agent needs.	Ensure the guarantor applies the Medallion Signature Guarantee stamp to the correct place on the document before you leave.
Not checking the stamp for completeness	An incomplete stamp might be rejected, causing further delays and requiring you to go through the process again.	Verify that the stamp includes the guarantor’s signature, the program name, and the date.
Submitting the wrong version of the document	The transfer agent may reject the document if it’s not the correct form or if it has been altered after the guarantee was applied.	Ensure you are using the exact document provided by the transfer agent and that it is properly completed before getting it stamped.
Not keeping a copy of the document	If there are issues with the submission or the transaction, you won’t have proof of what was submitted.	Make a photocopy or take a clear photo of the document with the guarantee before mailing it.
Not understanding the scope of the guarantee	You might think it covers more than it does, leading to incorrect assumptions about liability.	Understand that the guarantee protects against forged signatures, not against financial losses from the transaction itself.

Decision rules (simple if/then)

• If you are transferring securities and the transfer agent requires a guarantee, then you need a Medallion Signature Guarantee because it verifies your signature’s authenticity to prevent fraud.
• If you are unsure if you need a Medallion Signature Guarantee, then check the instructions from the transfer agent or financial institution because they will specify the exact requirements.
• If your bank or brokerage is a member of STAMP, NYSE, or SEMP, then you can likely obtain the guarantee from them because these programs authorize financial institutions to provide this service.
• If you have a strong relationship with your bank or brokerage, then inquire with them first about getting a Medallion Signature Guarantee because they may offer it as a free service to loyal customers.
• If you do not have an account with a participating institution, then you will need to find an independent bank or brokerage that offers the service, potentially incurring a fee.
• If you are unable to visit a participating institution in person, then you will need to make arrangements for someone to assist you or explore alternative, though less common, methods if available, as in-person signing is standard.
• If your signature on the document does not match your identification, then the guarantor will likely refuse to provide the stamp because consistency is key for verification.
• If you are transferring a large value of securities, then it is especially important to ensure the Medallion Signature Guarantee is properly obtained because the risk of fraud is higher, and the guarantee offers critical protection.
• If the document requiring the guarantee is complex, then review it carefully before signing to ensure all fields are completed accurately because errors can invalidate the guarantee or the entire transaction.
• If you are gifting or donating securities, then you will likely need a Medallion Signature Guarantee to transfer ownership legally.
• If you are selling securities and the transfer agent requires it, then you will need to obtain the guarantee to complete the sale and receive your funds.
• If you are settling an estate that includes securities, then a Medallion Signature Guarantee is often necessary for the executor to transfer ownership to beneficiaries.

FAQ

What is a Medallion Signature Guarantee?

It’s a special stamp applied by an authorized financial institution that guarantees the authenticity of a signature on a document, most commonly for transferring securities. It helps protect against fraud.

Who provides a Medallion Signature Guarantee?

Only specific financial institutions that are members of authorized programs like STAMP, NYSE, or SEMP can provide this guarantee. Your bank or brokerage firm is the most likely place to get one.

Do I need to be a customer of the institution to get a Medallion Signature Guarantee?

Not always. Some institutions offer the service to non-customers for a fee. However, established customers often receive it for free or at a lower cost.

How much does a Medallion Signature Guarantee cost?

The cost can vary. Some institutions provide it free for their customers, while others may charge a fee, which could be a flat rate or based on the value of the securities being transferred.

Can I get a Medallion Signature Guarantee from any bank or notary?

No. Only authorized financial institutions that are part of specific Medallion programs can issue these guarantees. A standard notary public cannot provide one.

What identification do I need?

You will need valid, government-issued photo identification, such as a driver’s license or passport, to prove your identity.

What happens if my signature is rejected?

If your signature doesn’t match your ID or is illegible, the guarantor may refuse to provide the stamp. You would need to attempt to sign more clearly or ensure your signature on file with the institution matches.

Is a Medallion Signature Guarantee the same as a notary stamp?

No. While both verify signatures, a Medallion Signature Guarantee is a much stronger form of verification, specifically for financial transactions involving securities, and carries a higher level of liability for the issuer.

What this page does NOT cover (and where to go next)

• Specific legal requirements for transferring different types of securities in various states.
• Next steps: Consult with a legal professional specializing in estate planning or securities law.
• Detailed explanations of capital gains taxes or estate taxes related to security transfers.
• Next steps: Speak with a tax advisor or CPA.
• Advice on investment decisions or whether transferring securities is the best financial move for your situation.
• Next steps: Consult with a qualified financial advisor.
• Information on international securities transfers or guarantees required outside the United States.
• Next steps: Seek guidance from financial institutions or legal experts familiar with international regulations.