Medallion Signature Guarantee
A stamp and signature provided by an approved financial institution that verifies the authenticity of a shareholder's signature on a stock transfer form, protecting against fraudulent transfers.
Full Definition
A Medallion Signature Guarantee is a special certification of a signature's authenticity, required by transfer agents for certain transactions involving the transfer, sale, or surrender of securities. The guarantee is provided by a participating financial institution (bank, credit union, or broker) enrolled in a Medallion Signature Guarantee programme (STAMP, SEMP, or MSP) and signals that the institution accepts liability for any forgery. Unlike a notary seal, a Medallion Signature Guarantee is specifically designed for securities transfers. Editors must reproduce the full phrase 'Medallion Signature Guarantee' and should not abbreviate it to 'medallion stamp' or 'signature guarantee' alone, as these are legally distinct terms.
Usage
Usage note: Do not abbreviate as 'medallion stamp' or 'MSG'. The full phrase 'Medallion Signature Guarantee' is required in formal documents. Editors should flag any substitution of 'notarisation', which is not an accepted equivalent for securities transfer purposes.
In Context
- "All stock transfer requests involving certificated shares require a Medallion Signature Guarantee from a bank or broker participating in the STAMP programme." — Transfer agent instruction guide
- "A notary seal is not an acceptable substitute for a Medallion Signature Guarantee when transferring registered securities." — Shareholder services FAQ