A medallion guarantee is a necessary part of selling or buying any bonds or stocks if one holds physical certificates rather than keeping them at one's broker in street name. One will likely need it when one sells physical stock certificates for the purpose of proving to the securities transfer agent that one is who one says one is & that he or she has the right to sign over the rights to assets that one is selling. One may also require a Medallion Signature Guarantee if one is gifting some shares or changing ownership on an investment account (like, if one is getting hitched & adding one's spouse to his/her account).
How do you get a Medallion Signature Guarantee?
Lots of banks & brokerages offer Medallion Guarantee programs, however, they mostly restrict it to their existing customers. As per to the U.S. Securities & Exchange Commission, there are 3 Medallion Guarantee programs: First is Securities Transfer Agents Medallion Program (STAMP): its participants include more than 8,000 U.S. & Canadian financial institutions. Second is Stock Exchanges Medallion Program (SEMP): it participants are the regional stock exchange member companies, & clearing and trust companies. Third is New York Stock Exchange Medallion Signature Program (MSP): it participants include NYSE member companies . Just financial institutions who belong to one of these programs can issue Medallion Guarantees. Member institutions aren't needed to provide the Medallion Guarantees for free, & lots of do charge for covering the liability risks they face by offering the guarantee.
Which Banks offer it?
Any financial institution which participates in one of the medallion guarantee programs can issue this guarantee. But, lots banks may require that one is an account holder at the institution prior to a signature guarantee can be issued. Any information regarding medallion signature guarantee services is not typically available online, so we reached out to the every of these financial institutions by phone to bring one the following information.Here’s the list of medallion signature guarantee banks:
1):- Chase: It offers medallion signature guarantee services at some locations, & only for account holders. As far is cost is concerned, it is free for account holders.
2):- Wells-Fargo: It, too, offers this service at some locations, & merely for Wells Fargo clients who have had an active Wells Fargo account for minimum 60 days. It costs varies from location to location.
3):- Toronto-Dominion Bank (TD Bank): It does not offers at all locations, but at some, however at most locations. It is only for its account holders. It strongly recommends contacting one's local branch prior to visiting to ensure the service is available & also to confirm important documentation & forms of identification. This service is free for its account holders.
4):- Union Bank & Trust: Does it offers medallion signature guarantee services? At some locations, & only for account holders. It is necessary that customers must confirm with their local Union Bank & Trust branch that if the services are available. It is for $50.
5):- Citibank: It offers this service only to its account holders and that, too, not at all locations. This service is free for its acount holders.
6):- KeyBank: Recently, it has merged with the First Niagara Bank). It offers medallion signature guarantee services at all locations, and, also, the service is free for account holders. Great, is not it? However, fees for non-account holders may vary a bit.
7):- PNC Bank: It offers this signature guarantee services at some locations, which depends upon the personnel available at the individual branch. The service is merely offered to account holders. It is absolutely free for account holders.
Financial Institutions that do not offer this Services
For your ease, we have included this section so that you are not left thibking that all banks offers this services. Well.... All do not.. For example: Bank of America and
HSBC Bank USA.
What about overseas folks?
The U.S. State department has recommended that overseas folks must contact local branches of participating financial institutions. Often, transfer agents accept alternative proof from military persons who are stationed overseas or they waive the requirement fully if the transfer of securities is so small enough. Generally speaking, though, it is easier to keep shares registered in "street name" with broker, instead of holding the physical certificates registered in one's name. Medallion guarantees are not needed to transfer securities held in thwe street name. That makes it substantially not difficult to commence a sale if one is not able to quickly reach an institution willing & able to initiate a guarantee.
Who owns paper stock certificates still?
In 2011, the New York Stock Exchange stopped needed physical stock certificates, which aided drive the decline of their use, & most of companies no longer issue them. Still, there is always the proverbial "trunk teemed with old stock certificates found while cleaning out grandma's attic" which may turn up from very time to time. From a very realistic perspective, there are few organizations which offer people an opportunity to buy framed actual share certificates as a gift. For the large part, though, the market has moved to a lower-cost, a higher-speed electronic trading. Even most of dividend reinvestment plans, historically the go-to method of purchasing merely one stock to get started, have commenced offering "direct stock purchase," leting one to purchase that first share directly from plan.
A hassle & a cost -- but generally & truly worth it:
In spite of the time, effort, & cost involved in getting a Medallion Signature Guarantee when selling shares or transferring ownership, the service gives worthwhile guarantees. They aid in protecting the parties who are involved in any securities transactions with a very reliable paper trail. As a result, if one does find that trunk stuffed with some old stock certificates when cleaning out grandma's attic, it becomes very much feasible to figure out that whether those shares do have value or not &, if it is so, who they belong to.