If you have ever tried selling shares, transferring securities, or settling an estate involving US investments, you may have run into an unfamiliar requirement: a Medallion Signature Guarantee.
More Than a Standard Notary
Most people assume a Medallion Guarantee is just a fancy notary stamp. It is not. A notary public simply confirms your identity by checking your photo ID. They do not take on financial responsibility if the document turns out to be fraudulent. A Medallion Signature Guarantee, by contrast, is a unique barcoded stamp issued by a participating bank or brokerage that verifies three crucial things:
- Your signature is genuine.
- You hold the legal authority to sign the document.
- The issuing bank accepts full financial liability if the transaction turns out to be forged.
Because the bank assumes direct financial risk, obtaining this stamp requires strict verification of your identity, ownership, and legal standing.
Major transfer agents such as Computershare explain when a Medallion Signature Guarantee is required for processing share transfers.
Why Is It Required?
Transferring ownership of stocks, bonds, or mutual funds carries high risks of identity theft and fraud. Transfer agents use the Medallion program to protect investors and institutions alike from unauthorised account draining. Without this guarantee, most transfer agents will simply refuse to process your request. Our Stock Transfer Services provide guidance on the documentation required to complete US share transfers successfully.
The U.S. Securities and Exchange Commission (SEC) provides further information about protecting investors and securities transactions.
How Do You Get a Medallion Signature Guarantee?
You cannot visit a standard solicitor or public notary for this service. You must obtain the guarantee from a financial institution that participates in an official Medallion program (such as STAMP, SEMP, or MSP). Most banks will only provide a stamp to existing customers, as they need an established account history before taking on the financial liability. If you need one, contact your primary bank or broker well in advance to clarify their documentation requirements.
How has your own investment strategy changed since prices started climbing? Contact Medallion Guarantee on 020 3985 9551.