How Much Does a Medallion Signature Guarantee Cost?
Understand the purpose, process, and typical cost of obtaining a Medallion Signature Guarantee for secure financial transactions.
A Medallion Signature Guarantee is a security measure in financial transactions, safeguarding against fraud and ensuring the legitimate transfer of ownership for certain assets. This specialized authentication helps protect both individuals and financial institutions from unauthorized transfers by providing a heightened level of verification for sensitive financial dealings.
What is a Medallion Signature Guarantee?
A Medallion Signature Guarantee is a unique stamp provided by an authorized financial institution that verifies the authenticity of a signature for the transfer of securities and other financial assets. This guarantee confirms the genuineness of the signature and that the signer possesses the legal capacity and authority to execute the transaction. Its purpose is to protect against fraudulent transfers and ensure the legitimacy of high-value financial transactions. Unlike a standard notary public stamp, which only verifies identity, a Medallion Signature Guarantee carries significant liability for the issuing institution, backing the transaction with its own assets. This distinction makes it a requirement for specific financial activities, such as transferring ownership of physical stock certificates, selling shares from an estate, or changing registration on investment accounts.
Preparing to Obtain a Medallion Signature Guarantee
Individuals seeking a Medallion Signature Guarantee should begin by contacting their financial institution, such as a commercial bank, credit union, or brokerage firm. These institutions must be members of specific Medallion programs, like STAMP, SEMP, or MSP, to offer the service. Many institutions require an existing customer relationship, often with accounts in good standing for a certain period, due to the significant liability involved. It is advisable to call ahead and schedule an appointment.
Before the appointment, gather all necessary documents and information. This typically includes a valid, government-issued photo identification for all individuals whose signatures require guaranteeing. You will also need the specific transaction documents requiring the guarantee, such as stock certificates or transfer forms, and proof of ownership of the assets, like recent account statements. Depending on the nature of the transfer, additional documentation like death certificates, court documents appointing a representative, or trust agreements may be required.
How Much Does a Medallion Signature Guarantee Cost?
For most existing customers of banks, credit unions, or brokerage firms, a Medallion Signature Guarantee is often provided without charge as part of their established account services. Fees may be imposed for non-customers, for transactions involving very high asset values, or if the institution views it as a specialized service outside routine account benefits.
Some institutions implement a tiered fee structure based on the transaction amount, with costs ranging from approximately $40 to $100 for transactions up to $1,000,000. For example, a guarantee for $100,000 might cost around $50, with higher fees for larger amounts. The institution’s specific policies, the total value of the assets being transferred, and the nature of the customer relationship significantly influence whether a fee is charged or if the service is even offered.
The Process of Getting the Guarantee
Once all preparatory steps are complete, obtaining the guarantee requires an in-person visit to the financial institution. All individuals whose signatures need guaranteeing must be present to sign the documents in front of the authorized guarantor. The guarantor will verify identities using the provided government-issued photo IDs and review all supporting documents, including account statements and transaction details.
After verification, the authorized representative will apply the Medallion Signature Guarantee stamp to the relevant documents. While some institutions with on-site stamps may provide the guaranteed documents on the same day, others may require a review period, typically ranging from two to five business days, before mailing the stamped documents.