Using a Stock Broker to obtain a Medallion Guarantee stamp
If you hold North American stocks and you wish to carry out a transfer or sale you will be asked to obtain a Medallion Guarantee Stamp some stock brokers in the UK offer this service, however before you proceed in instructing a stock broker to deal with this you should consider the following.
Typically stockbrokers in the UK are not members of the STAMP program, in other words they do not hold the correct medallion stamp themselves, instead by using a stockbroker, you actually lose an element of control of your stock as they will be transferred into a nominee account using their custodian in North America and eventually be sold by the Stockbroker from their nominee account, this can involve several “middle men” and can delay the process significantly.
The broker will also typically charge higher brokerage fees then selling directly through a transfer agent such as Computershare or Wells Fargo. You may think you are saving money by not having to pay for the Medallion Signature Guarantee but check the calculations, especially if you have high value stock.
If you obtain a Medallion Guarantee stamp through an independent agent that holds their own stamp you can obtain a Medallion Stamp on the Transfer and sale form almost immediately assuming that all paperwork/compliance requirements are met once issued you then have the documents to send to the Transfer agent and have the transaction processed in a matter of days.
Here at IWC we offer a full service where you can instruct us to deal with the Medallion Guarantee stamp and the full Transfer or Transfer and Sale of North American stock, we create all the paperwork in one go and forward to you for signing, once signed and returned with the appropriate ID documents for the Medallion Guarantee Stamp process we can then deal with the transfer or transfer and sale normally within 1-2 weeks depending on the Transfer agent involved.
If you need help with obtaining a Medallion Guarantee Stamp or the full transfer or transfer and sale of North American stocks contact us on 0208 150 2010 or via email at email@example.com