Medallion Waiver Option

Medallion Waiver Option

Medallion Waiver Option

A question we often here from our clients is simply “Is there a Medallion Waiver option’, in other words a way to avoid the need to have a Medallion Signature Guarantee.  The most obvious reason why people ask this question is because they are holding shares that have a very low value. Generally the cost to apply a Medallion Signature Guarantee is around £270, therefore if the shares are only worth a few hundred pounds a medallion waiver would be a preferred option. More so if the only reason for needing the Medallion Stamp in the first place is because of a marriage and the change of name of a persons surname.

Medallion Guarantee Waiver

Although some Transfer Agents may supply a Medallion Waiver option, it is down to the individual transfer agent to decide. The main reason why they do not generally like to offer such a service is because although the share price is low now that may not always be the case. Supposing, for example, a transfer agent such as Wells Fargo decide to waive the need for the Medallion Stamp just because the stock is only valued at a few dollars per share. So they waive the medallion and allow the transfer of shares to take place. But unbeknown to Wells Fargo the transaction is a fraudulent transaction.  Supposing after a few years the stock rises in value. Because of the new found interest in the Stock the original owner of the stock comes forward. He or she may have lost their certificate or evidence of the holding and they approach the Transfer agent.  The transfer agent advises the stock was transferred to another persons name under their Medallion Waiver program. All of a sudden this is a major problem because now the stock is worth a few hundred dollars per share.

What started out a simple process lands the transfer agent with a problem because the value of stocks and shares can rise significantly.

Note: The use of Wells Fargo as the named Transfer Agent in no way represents an example of any problem they have had. This is merely an example of why a Medallion Waiver is not something that is offered. Transfer Agents, prefer to use the Medallion Signature process. We can help with the process and our costs start at just £270 for a stamp only process. Call us on 020 8150 2010