Medallion Waiver Program
What is a Medallion Waiver?
The Medallion Waiver Program is not an official program set up by any particular organisation, such as the STA, SEC, or Keymark the founders of the STAMP program , the Medallion Waiver is sometimes offered by individual Transfer Agents aka Share registrars.
Why offer a Medallion Waiver
The Medallion Waiver is sometimes offered because Transfer agents do appreciate that sometimes Shares have a very low value and perhaps the reason why the Medallion is required might just be because of a name change. If a US citizen lives outside of the USA and has shares which require the medallion signature guarantee, it can be that the cost of the medallion is far in excess of the value of the shares
Do all Transfer Agents offer a Medallion Waiver
Not all Transfer agents will offer a Medallion Waiver option, and those that do offer it on a case by case basis. This is because if the transaction does turn out to be fraudulent the Transfer Agent could be held liable. What transfer agents have to consider is although the value of the stock they are transferring under any medallion waiver program may have a low value today, what could the value be in twenty years time? If the shares have rocketed and the transfer was done under a waiver program the transfer agent may have a problem in years to come.