A Medallion Signature Guarantee is a warranty from a bank, credit union, or brokerage in a Medallion program that a signature is genuine and the signer can legally transfer a security. It is not electronic notarization or any other notarization, and no notary, online or in person, can issue one.
What Is a Medallion Signature Guarantee?
A Medallion Signature Guarantee is a warranty, issued by an officer at a participating financial institution, certifying that a signature on a securities transfer document is genuine, that the signer is an appropriate person to endorse it, and that the signer has the legal capacity to do so. It protects transfer agents against fraudulent stock and bond transfers.
Unlike a notary’s seal, a Medallion stamp is backed by the guarantor institution’s own financial assets – if the guarantee turns out to be wrong, that institution is financially liable for the resulting loss. Stamps are also coded by value tier: a stamp with a “C” prefix, for example, typically covers transfers up to $500,000, while lower-value transfers may only require a lower-tier stamp.
The program exists because securities transfers carry real fraud risk that a simple identity check doesn’t fully address: someone could genuinely be who their ID says they are and still lack the legal right to transfer a particular security, especially in cases involving inherited assets, trusts, or accounts held jointly. The tiered, institution-backed guarantee system gives transfer agents a level of financial accountability that a standard notarization was never designed to provide.
Medallion Signature Guarantee vs. Notarization: What’s the Difference?
A Medallion Signature Guarantee and a notarization are frequently confused because both involve an official checking your identity and applying a stamp, but they’re issued by entirely different types of authorities for entirely different purposes – and one cannot substitute for the other.
| Feature | Medallion Signature Guarantee | Notarization |
|---|---|---|
| Who provides it | An officer at a bank, credit union, or brokerage that belongs to a Medallion program (STAMP, SEMP, or MSP) | A commissioned notary public, state-appointed and regulated |
| What it guarantees | The signature is genuine, the signer is authorized to transfer the security, and has legal capacity to do so | The signer’s identity and that they signed willingly |
| Financial liability | Backed by the guarantor institution’s own assets if the guarantee turns out to be wrong | A notary carries no financial liability for the underlying transaction |
| Used for | Transferring or selling physical securities – stocks, bonds, mutual fund shares | A broad range of legal and personal documents |
Because a notary carries no financial responsibility for the transaction itself, financial institutions and transfer agents specifically require the added assurance a Medallion program provides – no amount of notarization, including online notary public service, satisfies that requirement. If a form asks for a Medallion Signature Guarantee, a notarized signature will be rejected outright, not treated as an acceptable substitute.
This distinction surprises a lot of people the first time they encounter it, since both processes look similar on the surface – someone checks your ID, watches you sign, and applies an official-looking stamp. The difference only becomes obvious once a transfer agent actually rejects a notarized document and asks specifically for the Medallion stamp instead, which is often the first time anyone learns the two aren’t interchangeable.
To see what a notary can and cannot do, read what a notary public is and what powers they have.
How Do You Get a Medallion Signature Guarantee?
You can only get a Medallion Signature Guarantee from an officer at a bank, credit union, or brokerage that participates in one of the three Medallion programs – the Securities Transfer Agents Medallion Program (STAMP), the Stock Exchanges Medallion Program (SEMP), or the New York Stock Exchange Medallion Signature Program (MSP).
- Contact your bank, credit union, or brokerage and ask whether they participate in a Medallion program and have an authorized officer on staff.
- Bring a valid government-issued photo ID, such as a driver’s license, passport, or military ID.
- Bring the original security document you need guaranteed, along with any related paperwork.
- Provide verification documents, such as an account statement or certificate identifying the security’s owner – requirements vary by institution and transfer type.
- Allow one to seven business days for the institution to review and process the request before the transaction can move forward.
Most institutions only provide this service to existing account holders, and many offer it free or for a modest fee ($10-$50) rather than a large charge – call ahead to confirm your specific bank or brokerage actually offers it before making a trip.
It’s worth asking specifically about the three named programs by name when you call – STAMP, SEMP, and MSP – since not every teller or general customer service line knows off the top of their head whether the branch has an authorized Medallion officer available that day, even at institutions that do participate. Larger brokerages and regional banks are generally more likely to have someone on staff than a small community bank branch, though this varies significantly by location.
What Documents Require a Medallion Signature Guarantee?
A Medallion Signature Guarantee is required almost exclusively for transferring or selling physical securities – stock certificates, bond certificates, and mutual fund shares – particularly when ownership is changing hands, such as through a gift, inheritance, or sale. It’s less commonly required for routine account maintenance, like updating contact information or beneficiary details, though some institutions apply it there too depending on their own internal risk policies.
- Transferring stock or bond certificates between individuals
- Selling securities held in physical certificate form
- Moving inherited securities into a beneficiary’s name
- Certain retirement account transfers specified by the plan administrator
If you’re not certain whether your specific form requires a Medallion Signature Guarantee versus a standard notarization, check the form’s instructions directly or call the transfer agent or financial firm handling the transaction – the two terms get used loosely enough in casual conversation that assuming based on the document type alone is risky.
Employer stock plans, dividend reinvestment programs, and old paper stock certificates inherited from a relative are three of the most common situations where people encounter this requirement for the first time, often without realizing it in advance. In each case, the underlying account or transfer agent, not the type of security itself, is what determines whether a Medallion Signature Guarantee is required, so the same type of document can carry different requirements depending on which company or agent is holding it.
Transfer agents typically state the requirement explicitly on the form itself, often in bold text near the signature line, precisely because the confusion with notarization is so common. If a form doesn’t specify which one it wants, don’t guess – call the transfer agent or financial firm handling the transaction and ask directly, since submitting the wrong type of verification means starting the process over.
What Other Documents in This Process Might Need Notarization Instead?
While the securities transfer form itself typically needs a Medallion Signature Guarantee, other documents that come up around the same transaction – estate paperwork, powers of attorney, and affidavits – often do need standard notarization, which can be handled separately through electronic notarization. Keeping these two requirements straight matters especially in estate settlements, where a single filing packet might include both a Medallion-guaranteed stock transfer and a separately notarized affidavit of inheritance.
- Powers of attorney authorizing someone else to manage or transfer assets
- Affidavits of domicile or inheritance used in estate settlements
- Beneficiary designation or transfer-on-death paperwork, depending on the institution
BlueNotary’s Durable Power of Attorney template and remote online notarization service can handle the notarization side of an estate or transfer process – just not the Medallion Signature Guarantee itself, which only a participating financial institution can issue.
Not sure whether your specific document needs a Medallion Signature Guarantee or standard notarization? Email BlueNotary directly at [email protected] and the team will help you out.
FAQ Section
Q1. What is a Medallion Signature Guarantee?
A certification from a participating bank, credit union, or brokerage confirming a signature is genuine and the signer is authorized to transfer a security.
Q2. Can a notary provide a Medallion Signature Guarantee?
No. Only an officer at a financial institution belonging to a Medallion program (STAMP, SEMP, or MSP) can issue one – a notary’s seal does not satisfy this requirement.
Q3. Does electronic notarization work instead of a Medallion Signature Guarantee?
No. A notarized signature, however it’s completed, is not an acceptable substitute when a form specifically requires a Medallion Signature Guarantee.
Q4. How much does a Medallion Signature Guarantee cost?
Often free for existing customers, or a modest fee of roughly $10 to $50, depending on the financial institution.
Q5. What documents typically need a Medallion Signature Guarantee?
Mainly documents transferring physical securities – stock certificates, bond certificates, and mutual fund shares changing ownership.
Q6. Can my bank provide a Medallion Signature Guarantee?
Only if it participates in a Medallion program and has an authorized officer on staff – call ahead to confirm before visiting.
