Who Can Provide a Medallion Signature Guarantee?

A medallion signature guarantee can be issued only by a financial institution that participates in a recognized medallion program, which in practice means commercial and savings banks, credit unions, savings associations, broker-dealers and other securities professionals registered under the Securities Exchange Act, and national securities exchanges and clearing agencies.1eCFR. 17 CFR 240.17Ad-15 – Signature Guarantees Most people get their stamp from a commercial bank, credit union, or brokerage firm where they already hold an account.2Investor.gov. Medallion Signature Guarantees – Preventing the Unauthorized Transfer of Securities The reason the list is narrow: the institution issuing the stamp accepts financial liability if your signature turns out to be forged or unauthorized, and it backs that promise with a surety bond that can run into the millions.

The Five Categories of Eligible Institutions

Federal regulations define five categories of institutions that can issue a medallion guarantee:1eCFR. 17 CFR 240.17Ad-15 – Signature Guarantees

  • Banks, including commercial banks and savings banks
  • Broker-dealers and other securities professionals registered under the Securities Exchange Act
  • Credit unions
  • National securities exchanges and clearing agencies
  • Savings associations

Being in one of these categories is a legal prerequisite, not a guarantee that the institution actually offers the service. Many small credit unions and community banks skip the program entirely because the compliance overhead and bond costs aren’t worth it for their customer base. Before you make the trip, call and confirm.

The Four Medallion Programs

Every institution that issues stamps belongs to one of four programs. The program sets the surety bond coverage that stands behind each stamp:

  • Securities Transfer Agents Medallion Program (STAMP) — the largest, with more than 7,000 participating financial institutions in the U.S. and Canada2Investor.gov. Medallion Signature Guarantees – Preventing the Unauthorized Transfer of Securities
  • Universal STAMP (U-STAMP), a companion to STAMP recognized by all major financial services associations3MedallionPrograms.com. Medallion Programs
  • Stock Exchanges Medallion Program (SEMP), whose participants include regional stock exchange member firms and clearing and trust companies
  • New York Stock Exchange Medallion Signature Program (MSP), whose participants are NYSE member firms

All four are recognized by transfer agents, so from your side of the transaction it usually doesn’t matter which program your institution belongs to. What matters is that its stamp carries a coverage prefix high enough for the value of your transfer.

A Notary Is Not a Substitute

A notary public cannot provide a medallion signature guarantee. Notaries verify the signer’s identity but assume no financial liability for the transaction. Transfer agents will reject a notarized document when a medallion stamp is required. The two are different instruments with different legal weight, and one cannot replace the other regardless of how convenient a notary might be.

Why Eligibility Doesn’t Mean Access

The hard part of getting a medallion guarantee is rarely finding an eligible institution. It’s finding one willing to serve you. Most institutions restrict the service to existing customers, and many require an established relationship of at least six months before they’ll apply a stamp. The reasoning tracks the liability: the officer is personally assessing whether your signature is genuine and whether you have authority to make the transfer, and the institution is putting its surety bond behind that judgment. A six-month account history gives the officer something to check your request against.

That policy creates a real problem when you need a stamp at an institution where you have no relationship — a common situation when you inherit securities held somewhere you’ve never banked. Not every branch of a participating institution has an authorized officer on-site either. Larger branches usually do; smaller ones may require an appointment with a manager or compliance specialist. Call ahead rather than walking in.

Options If Your Bank Won’t Help

If your own bank or credit union doesn’t participate, or won’t stamp for you, a few paths remain:

  • Use your brokerage firm. If the securities sit at a brokerage, that firm can often provide the guarantee directly, since broker-dealers are eligible guarantors.
  • Open an account at a participating institution. Some banks will provide the service once you have an active account, though others enforce a waiting period. Ask about the medallion policy before you open anything.
  • Search a directory of guarantors. The Securities Transfer Association maintains a directory at msglookup.com where you can search for participating institutions by state.
  • Use an online medallion service. At least one service, eSignatureGuarantee.com, offers medallion guarantees through a remote identity-verification process, with the stamped documents couriered back to you. This can help when no local institution will serve non-customers.
  • If you live outside the United States, expect the toughest search. A handful of firms in the U.K. and Australia participate in STAMP and serve international clients.

Cost depends on the relationship. Many institutions provide the service free to their own account holders. Non-customers who find a willing institution may pay a fee, typically in the range of $10 to $100 per stamp.

Match the Institution to Your Transaction Value

Every medallion stamp carries an encoded prefix identifying its coverage tier. Prefixes range from roughly $100,000 at the lowest tier up to $14 million at the highest. The transfer agent compares the prefix against the current market value of the securities being transferred, and if the value exceeds the coverage, the agent rejects the document.

Smaller institutions carry smaller surety bonds. A local credit union might be authorized up to $100,000; a major national bank could cover several million. If your transfer involves high-value holdings, ask the institution about its prefix limit before your appointment. Discovering afterward that coverage is too low means starting over somewhere else. One phone call avoids it.

What to Bring When You Go

Whichever institution you settle on, gather everything before the appointment. Expect to bring:

  • Government-issued photo ID — a passport or driver’s license — for every person who needs to sign
  • A recent account statement showing the securities being transferred, ideally dated within the past year, which also lets the officer verify current market value against the stamp’s coverage
  • The unsigned transfer document, usually a stock power or transfer-of-ownership form provided by the brokerage or transfer agent
  • Any supporting legal documents the transaction requires, such as court-issued letters testamentary for an estate transfer or the original power of attorney if you’re signing as someone’s agent4Bank of America. Medallion Signature Guarantee

Fill in every field on the transfer document before your appointment — number of shares, name of the new owner, account details — but leave the signature line blank. You have to sign in front of the authorized officer. The officer will confirm your identity, verify the transaction value against the institution’s coverage limit, watch you sign, and then apply the stamp. If anything looks off, such as a mismatch between the name on the account and the name you’re signing under, or a transaction value above the stamp’s authority, the officer will decline. Finding that out in the room is far better than finding it out from a rejection notice weeks later.