A medallion signature guarantee is a special certification stamp that guarantees a signature that authorizes an authentic transfer of securities is genuine. It is an assurance by the financial institution that the signature was genuine, the signer was an appropriate person to endorse, and the signer had legal capacity to sign. A medallion signature guarantee is not equivalent to a US notarial Acknowledgment. The medallion signature guarantee program was implemented in order to protect investors, treat financial institutions equitably, increase the efficiency of transferring securities, and reduce risk.
To obtain a medallion signature guarantee, individuals can contact their bank, credit union, broker, or other financial firm they have an account with and inquire if the institution participates in the Medallion Signature Guarantee program. Financial institutions must belong to one of three select Medallion signature guarantee programs to provide this service. The financial institution that provides the guarantee assumes liability for any forged or unauthorized signatures. Certain formal documents require a medallion signature guarantee, which authenticates the signature and ensures the signer has the legal authority and capacity to sign. Individuals should contact their other firm to see if they require a medallion signature guarantee for transfer paperwork.
