If you happen to be based in the UK and are administering an estate where shares have been traded on Stock Exchanges in Canada or America, then you will no doubt be in need of a Medallion Signature. That’s because you won’t be able to sell or transfer them until you get this North American approved ‘security’ stamp.
What exact is a Medallion Signature Guarantee?
The Medallion Signature Guarantee stamp is, in fact, a statutory requirement when you plan on transferring securities in North America. This is under the auspices of the American Securities Exchange Commission (SEC). The stamp is a means of ensuring there is no fraudulent activity taking place in the transfer. The SEC achieve this by ensuring a special security code is included within the stamp.
In other words, what the Stamp proves is that the person setting up the transfer has the rights to do this in the first place. You will find the stamp on the initial Transfer Request Form. Only when there is a genuine Medallion Signature Guarantee will the transfer agent be able to verify that the transfer is genuine, and that the person signing the transfer is also legitimate. The Medallion Signature Guarantee then is the green light the transfer agent needs to go ahead and transfer the stock as requested.
When you don’t need a Medallion Signature Guarantee
It is worth noting though that a Medallion Signature Guarantee is only needed when financial assets, such as accounts, bonds or stocks are being transferred by the person holding them (ie the owner). A broker transferring the shares etc doesn’t require a Medallion Signature Guarantee.
Can I get a Medallion Signature Guarantee in the UK?
It is always much easier to get a Guarantee if you are located in North America. That’s because you can get one from almost any financial institution. That means a bank, credit union or broker. There are, in fact, more than 7000 such organisations in the States where you can get a Medallion Signature Guarantee.
Outside North America it isn’t as easy to get the stamp. That’s because the number of places where you can obtain the guarantee is limited. It certainly isn’t impossible though. And, in fact, here at Medallion Guarantee we can issue you with one. As a UK based Probate & Estate Administration company and transfer agent we are legally entitled to go ahead and do this. It’s important to be aware too that we are legally obliged to verify and check your details with the Money Laundering Databases.
Mergers and acquisitions
If you, or a client of yours, have stock in a UK company which has recently been acquired by a North America business then you will almost certainly require a Medallion Signature Guarantee when you come to transfer or sell them. If that’s the case then do get in touch.
How to contact us
You can find out more about ourselves by calling us, tel: 0203 985 9551 (or +44 20 8150 2010 from outside the UK). In the meantime, please do take a look at our website