MEDALLION STAMP GUARANTEES
A Medallion Guarantee is a certification used for transferring securities provided by an eligible guarantor institution with a membership in an approved signature Medallion Guarantee Program. The Medallion stamp is bright green in color that certifies the signature on a stock power or endorsed stock certificate as authentic and that the institution affixing the stamp accepts liability for any forgery. The Medallion Guarantee is not the same as an acknowledgement by a notary public. It is a special signature guarantee designed for the securities industry to protect your stock and prevent forgeries.
We require an original Medallion Guaranteed signature to transfer shares in order to protect you from fraud or theft. You may obtain a Medallion Guarantee Stamp from a financial institution such as your bank, credit union, or broker dealer that participates in one of the three Medallion Programs listed below:
Medallion stamp programs
STAMP (Securities Transfer Agents Medallion Program)
SEMP (Stock Exchanges Medallion Program)
MSP (New York Stock Exchange Medallion Signature Program)
where can i obtain A MEDALLION STAMP?
Enter your city, state or postal code at MSGLookup.com to find a financial institute near you that participates in one of the medallion stamp programs. Please be advised that financial institutions or banks may only provide Medallion Signature Guarantees for their customers. You should contact Guarantors directly to determine the availability of Medallion Signature Guarantees and to determine the Guarantors’ specific requirements.
when is a medallion stamp needed?
Transfer shares to a different registration name
DWAC deposit to a brokerage account
When is a medallion stamp not needed?
A medallion stamp is not required when shares are staying in the same registration name.
Moving certificated shares into electronic (book-entry) form
Lost certificate replacement
Certificate exchange per corporate action
DRS PROFILE deposit to a brokerage account
I CANNOT OBTAIN A MEDALLION GUARANTEE. WHAT SHOULD I DO?
If you live in the U.S. you are required to obtain a Medallion Guaranteed signature stamp on your stock certificate endorsement or stock power. However, if you live outside the U.S. and it is impossible for you to obtain a Medallion, a notary or other equivalent signature guarantee may be acceptable. Additional requested paperwork and issuer approval would be required in order to substitute a Medallion. Please contact us for more details.
MEDALLION Signature COVERAGE
A Medallion Signature Guarantee must cover the full amount of the security being transferred. It’s important to acquire a coverage level that is equal to or greater than the amount of the transaction.
Each Medallion has a unique identification number with a letter prefix signifying the dollar amount insured by the Guarantor. Each prefix has a corresponding amount of coverage as listed below:
In case you are wondering why a medallion guaranteed stock power is required: UCC Article 8 requires proper endorsement any time securities are transferred out of the current name. To comply with this rule, the industry best practice is getting the Medallion Guarantee stamp. The Medallion Guarantee protects all parties by confirming that the person signing is the appropriate person to sign and it provides insurance for that transaction.