Official documentation and legal terms are often misunderstood until a person or business requires their use. Medallion signature guarantees and notarisation are very different, but it can be challenging to know the key differences if you have never needed either. This blog looks at the main difference between the two.
Medallion Signature Guarantees
For the purpose of safely trading or transferring securities, a Medallion Signature Guarantee (MSG) stamp is required. The stamp serves as evidence, demonstrating that the signer is authorised. Every MSG stamp has an alpha prefix; if the selling value exceeds the cap, transactions are automatically rejected. Stocks, bonds, and other securities are shielded from theft and forgery using MSG Stamps. The authorised entity assumes responsibility through the Medallion programme for the associated coverage limit in the event of a forgery. Banks and credit unions sell MSG stamps to investors. Traders adhere to Securities and Exchange Commission (SEC) rules while applying for an MSG stamp.
Three MSG programmes are available:
- Programme for New York Stock Exchange Medallions.
- The Medallion Programme of the Securities Transfer Agent.
- The programme for stock exchange medallions.
Notary Public
A notary public is qualified to observe the execution of important papers and confirm the signers’ identities. Notaries have the power to administer oaths and affirmations and verify the legitimacy of documents. State governments appoint notaries who must fulfil specified qualifications regarding training and work history.
Notarisation is crucial in combating fraud and guaranteeing the validity of documents. The act of notarising a document certifies that the signers are who they say they are and that the document hasn’t been changed since they signed it.
Some of the most typical documents that are notarised are:
- Real estate agreements
- Trusts and wills
- Power of attorney
- Adoption documents
- Passport requests
- Immigration paperwork
- Business agreements
- Loan applications
- Rental contracts
Notary vs Medallion Signature Guarantee
MSG stamps need to be rigorously verified and authenticated by a legal authority. The investor cannot transfer any assets or securities before that time. However, a notary just needs a passport or another form of government-issued picture identification, like a driver’s licence.
The name on the document to be notarised should match the name on the photo ID; unlike MSG, notarisation is quick and simple.
mFor stocks, bonds, and other financial products, MSG stamping is used. In contrast, a notary public acts as a witness for legal papers such as life insurance policies and proof of car ownership. Banks and credit unions offer MSG stamping services. On the other hand, anyone having a valid state-issued notary public commission may engage in notary-related activities.
Contact Medallion Guarantee on 0203 985 9551.