A Medallion Signature Guarantee is a specialised form of authentication used primarily to verify signatures on certain financial documents. Though it originates from North America, it plays a crucial role for UK residents involved in cross-border transactions, particularly those linked to U.S. securities.
What Is a Medallion
Signature Guarantee?
A Medallion
Signature Guarantee confirms that the signature on a document is
genuine and that the signer has the legal authority to carry out the action,
such as transferring stocks, bonds, or other securities. It is not the same as
a notarisation. It offers financial protection to the transfer agent processing
the request, by providing a liability guarantee from the institution that
issues it.
This guarantee typically involves stamping the
document with a unique seal that includes a barcode or other form of traceable
ID. The stamp comes from an authorised financial institution, such as a bank or
investment firm, which must be part of a recognised signature guarantee
programme.
When Is a Medallion
Signature Guarantee Required?
UK residents most commonly require a Medallion
Signature Guarantee when dealing with securities held in the United States.
Typical scenarios include:
·
Transferring
shares from a deceased relative's estate.
·
Selling
or gifting U.S.-based stocks.
·
Changing
the ownership of securities held in an investment account.
·
Handling
corporate share-related transactions.
These transactions often involve U.S. transfer
agents who will not process changes without a Medallion Signature Guarantee to
protect against fraud and unauthorised dealings.
Who Needs One in the
UK?
Not everyone in the UK will need a Medallion
Signature Guarantee, but it becomes necessary for:
·
Heirs
or executors managing estates that include U.S. stocks.
·
Investors
holding U.S. securities who wish to sell or transfer them.
·
Shareholders
needing to update personal details or account ownership linked to U.S.
entities.
·
Legal
representatives acting on behalf of such individuals.
The key is whether the document in question
relates to U.S. securities and requires validation by a U.S.-based transfer
agent. If so, the Medallion Signature Guarantee is not
optional—it’s mandatory. Getting one can take time, as only certain
institutions can issue them, and the process involves verifying identity and
legal authority. Anyone dealing with cross-border securities should understand
when and why this guarantee is required to avoid delays or rejection of vital
financial actions.
Reaching a recognised company or agency, where
professionals are working will be the right way to get precise solutions and
complete assistance at every step for the Medallion Signature Guarantee. They
listen to you and provide you with precise solutions at every step.