Medallion Signature Guarantee – Obtaining A Guarantee Outside Of The UK and USA
Getting a medallion signature guarantee is not always an easy thing to accomplish. For those who are operating in the UK and USA, the task can often be much easier, almost simple. But for those who operate outside of the places, like in Europe or Asia, the task can often be more difficult. So how do you get a medallion signature guarantee in these places?
What is a medallion signature guarantee?
The medallion signature guarantee was designed as a method to provide authenticity for the transferring of securities, which can take the form of many things. The guarantee is proof that the signature of the financial institution or the owner transferring the securities is genuine and legitimate and thus can be trusted. They can be used to protect shareholders and investors from any losses by preventing unauthorised transfers, which can not be completed without the signature guarantee.
Why is it so difficult to obtain one in places outside of the UK and USA?
The problem with obtaining the medallion signature guarantee outside of the UK and USA is that it’s not something many banks want to go to the trouble of getting officialised and approved. Many companies and financial institutions that will provide one are often unwilling to provide one to the general public, and are only usually willing to do so if you’ve been a client with them for many years, because there are many different risks associated with approving the guarantee, and in the scenario where something goes wrong, the financial institution that provided the guarantee can be at fault and can be subject to the consequences.
Because of this, many banks are unwilling to provide one except in extraordinary circumstances, and even then this is restricted to long time clients, and not the general public. The reason behind refusal can be subject to the shares you’re trying to transfer, as well as where you are and where you’re going to need the medallion signature guarantee for, so it’s best to do some research beforehand to figure out how difficult it’s going to be. The process can also be more time consuming when dealing with countries which are outside of the UK and USA, which is also a factor that affects how willing financial institutions are to involve themselves.
Overall, the process that is involved in seeking a medallion signature guarantee can be complicated, time-consuming and possibly expensive for the trading of financial securities in places that are outside of the UK and USA. The reasons why a financial institution will be reluctant to involve themselves can be very circumstantial and will vary from situation to situation. However, there are several recurring factors which can play a role in getting the medallion signature guarantee either created or rejected. Certain types of stocks will either be a hindrance or not, and certain securities may need approval in both the country of origin and the destination country if the securities are being moved from one part of the world to another. As well as this, many banks are often quite reluctant to authorise and issue a medallion signature guarantee to anyone who is not a long-standing and loyal customer, and some will flatly refuse to distribute the guarantee to the general public, and will only be willing to do so in exceptional circumstances. It is well worth researching and finding a company that will be willing to work with you in advance if it is possible to predict the trading of the securities, so you can get the processes complete and finished with as little hassle as possible, in an inexpensive, efficient and simplistic manner.