A Medallion Signature Guarantee (often called a “Medallion stamp”) is a special type of certification used in the U.S. and Canada to verify the authenticity of a signature on financial documents, especially those involving the transfer of securities (such as stocks, bonds, or mutual funds).
Here’s what makes it special:
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Guarantee of authenticity: It confirms that the signature is genuine, and the institution issuing the stamp (like a bank, credit union, or brokerage) assumes liability if the signature turns out to be fraudulent.
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Prevents fraud: It’s stronger than a regular notarization because it protects both the investor and the transfer agent handling the securities.
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Required for certain transactions: Commonly needed when selling, transferring, or changing ownership of securities, or when changing account details with investment firms.
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Where you get it: Typically only from financial institutions where you have an account, since they need to know and verify your identity and financial standing. Notaries generally cannot issue Medallion guarantees.
Example: If you want to transfer shares from a deceased relative’s brokerage account into your name, the transfer agent may require your signature on the transfer form to have a Medallion guarantee.