How Much Does a Medallion Signature Guarantee Cost?

Understanding the Medallion Signature Guarantee

A Medallion Signature Guarantee (MSG) is a specialized form of signature verification, providing a significant layer of security beyond what a standard notary public offers. It is a certification stamp from a financial institution, verifying that the signature is genuine, the signer has the legal capacity to act, and possesses the proper authority to complete the transaction. This guarantee is particularly important for preventing fraudulent transfers of physical securities, such as stock certificates, bonds, or mutual funds.

Financial institutions that issue an MSG accept liability for any potential forgery, protecting both the transfer agent and the asset owner. This guarantee is typically required when transferring ownership of securities, including inherited assets, gifting securities, or changing names on investment accounts. Unlike a notary, which only confirms the signer’s identity, a Medallion Signature Guarantee warrants the signer’s legal authority to conduct the transaction.

Where to Obtain a Medallion Signature Guarantee

Medallion Signature Guarantees are typically provided by financial institutions that are members of specific recognized programs, such as the Securities Transfer Agents Medallion Program (STAMP), the Stock Exchanges Medallion Program (SEMP), or the New York Stock Exchange Medallion Signature Program (MSP). These institutions commonly include banks, credit unions, and brokerage firms. Not all financial institutions, or even all branches of a participating institution, offer this service.

Before visiting, individuals should contact their financial institution to confirm the availability of this service and any specific requirements. Many institutions primarily offer Medallion Signature Guarantees to their existing customers who have an established relationship. Online-only banks or smaller local institutions may not participate in these programs, limiting their ability to provide the guarantee.

Cost of a Medallion Signature Guarantee

For existing customers of a bank, credit union, or brokerage firm, a Medallion Signature Guarantee is often provided free of charge as a customer service benefit. This is a common practice among institutions that value their established client relationships. The willingness to provide this service without a fee often depends on the customer’s history and the nature of their accounts with the institution.

However, for non-customers, or in certain situations, a fee may be assessed. The cost can vary widely depending on the institution’s policies and the value of the assets being guaranteed. Some financial institutions may charge a nominal fee, which could range from approximately $10 to $75 for transactions involving up to $100,000. For higher value transactions, the fee might increase, potentially starting around $50 for a $100,000 guarantee and rising for larger amounts. It is always advisable to inquire about any potential fees directly with the financial institution before proceeding.

Preparing to Get a Medallion Signature Guarantee

Obtaining a Medallion Signature Guarantee requires careful preparation. Individuals must gather specific documentation before visiting a financial institution. This typically includes a valid, government-issued photo identification, such as a driver’s license or passport, for all individuals whose signatures require guaranteeing.

Proof of ownership for the securities or assets being transferred is also necessary. This can take the form of recent brokerage statements, mutual fund statements, or original stock certificates. The actual unsigned document that requires the guarantee, such as a stock power form or transfer instruction form, must be brought to the appointment. If the signer is acting on behalf of another party or an estate, additional legal documents proving their authority, such as death certificates, trust agreements, or power of attorney documents, will be required.