When transferring or selling U.S. securities, the Medallion Signature Guarantee (MSG), an official seal created to stop fraudulent transactions, must be used. Another name for it is a Medallion Guarantee or a Gold Medallion Guarantee. A Medallion Signature Guarantee confirms the authenticity of the signature and the signatory’s legal right to transfer the asset by stamping the transfer documents. This blog covers key details about Medallion Signature Guarantees. For an official U.S. overview of MSGs and why they’re required, see the SEC’s explanation Medallion Signature Guarantees – Preventing the Unauthorized Transfer of Securities.
What Does a Medallion Signature Guarantee Do?
A Medallion Signature guarantees a genuine signature when transferring or selling U.S. securities. If your original documentation is from outside the United States, you may first be required to provide a notarised and/or Apostille certificate, along with a translation, before the Medallion Guarantee can be issued. This extra step ensures that foreign documents meet the U.S. transfer agent’s strict legal standards. For insight into how MSGs work for UK and overseas holders of U.S./Canadian securities, visit IWC probate services.
To provide a Medallion Signature Guarantee, the institution must take part in one of the three authorised programs. These include the Securities Transfer Agents Medallion Program (STAMP), the Stock Exchanges Medallion Program (SEMP), and the New York Stock Exchange Medallion Signature Program (MSP).
A Medallion Signature Guarantee may be issued by a domestic bank, clearinghouse, broker-dealer, trust company, or other reputable financial organisation. Although many investors now prefer electronic records, a Medallion Signature Guarantee is often required when shares are held in physical certificates. A UK‑based STAMP member that offers MSG services is IWC Estate Planning and Management Ltd more info can be found here Probate Services
When Might You Need a Medallion Signature Guarantee?
A medallion signature can promise a variety of things. Here, we look at the most common reasons why a Medallion Signature Guarantee is necessary:
- When monetary assets are transferred between accounts or given as gifts
- If the owner wishes to sell or transfer financial assets (such as stocks, accounts, bonds, etc.) • If the owner passes away
What is a Share Certificate?
The legal ownership of a certain number of shares in a corporation is attested by a share certificate, also known as a stock certificate. The main contents of a share certificate are:
- The full name and address of the shareholder;
- The number of shares held
- The class of shares
- The date the shares were issued
- The sum paid on the shares
- The organisation’s name
- The organisation’s registration number
Before proceeding, it is essential to fully understand all required documentation to ensure that everything is completed legally, efficiently, and promptly. For this reason, it is important to seek professional assistance.
Learn more about how we assist clients with Medallion Signature Guarantees on our Services page: Medallion Guarantee Services.