Most people will not have heard of the Medallion Guarantee Stamp let alone realise what a company providing the stamp is actually opening themselves up to by providing it,
First of all the Medallion Stamp is not the same as a Notary seal or a solicitor certification, far from it, by providing the MSG Stamp a company is taking on the financial responsibility of a transaction by guaranteeing that the transaction is being actioned by the correct person(s).
If a transaction of say $100k turned out to be fraudulent the company that supplied the MSG would be liable for losses incurred by the genuine owner of the stock, if the fraud is not uncovered for 5 years the share price could have trebled and therefore the Medallion Signature Guarantee Stamp provider would be liable to pay back $300k in damages, often customers are shocked at the cost of the Medallion but they do not realise the risk involved in providing one.
Unfortunately there is only so much you can do to combat fraud, criminals will be criminals, the large majority, if not all of the banks in the USA will only provide the Medallion Guarantee Stamp to existing customers, normally who have been a customer for at least six months and often will only provide the stamp if the transaction involves the money being kept within their accounts system, for example in the bank offers a brokerage arm of their bank, this is to limit the risk involved and so that they can keep one hand on the money being generated in the event of any fraudulent transactions taking place, this is how the majority of banks in the US are able to provide the Medallion Guarantee for free or for a small fee of anything up to $100.
Often we have customers who say that it would be cheaper to fly to the USA then use our service, I would love to know who they are flying with to obtain a return flight to New York for under £275, I would be booking ten times a year if that was the case!
Even if you did fancy a weekend break in New York and fly to the USA if you do not have an account with a financial institution out there, you will not be able to simply walk into a bank and obtain a Signature Guarantee Stamp.
So if you require an Medallion Stamp or require assistance in dealing with the full transfer/transfer and sale of North American shares, contact us now on 0203 985 9551 or via email at enquiries@iwcprobateservices.co.uk