Medallion Signature Guarantee Services
Simplifying the sale or transfer US & Canadian assets
When selling or transferring securities in the United States or Canada, a Medallion Signature Guarantee (MSG) is often a mandatory requirement. This specialised certification verifies the authenticity of a signature authorising the transfer of shares or other securities.
Share Data Ltd is an approved STAMP member (Securities Transfer Agents Medallion Program), authorised to issue Medallion Signature Guarantees on behalf of banks, stockbrokers, accountants, and solicitors.
Medallion Signature Limits
A Medallion Signature Guarantee is a special stamp used to authenticate signatures during the transfer or sale of U.S. securities, ensuring the signature is genuine and that the signer has the legal authority to complete the transaction.
Each Medallion stamp carries a prefix letter that indicates its maximum coverage value, known as the surety limit. This limit represents the highest value of securities that can be transferred or sold under that stamp.
| Prefix | Coverage limit |
|---|---|
| A | $1,000,000 |
| B | $750,000 |
| C | $500,000 |
| D | $250,000 |
| E | $100,000 |
| F | $100,000 (restricted for credit unions) |
| X | $2,000,000 |
| Y | $5,000,000 |
| Z | $14,000,000 ($10 million for Z prefix plus an additional $4 million of coverage for Securities Transfer Association members) |
Why You May Need a Medallion Signature Guarantee
A Medallion Signature Guarantee is typically required when:
MSGs are used to protect against unauthorised transfers and to reduce the risk of fraud. Most North American transfer agents will not process such transactions without this guarantee.
What We Offer
Authorised Medallion Signature Guarantee Stamps
24-hour turnaround upon receipt of all required documentation
Support for securities valued up to $2 million (as of November 2024)
Indemnity letter template provided for UK-regulated firms
Translation services for required documentation
FAQ
What is a Medallion Signature Guarantee?
A Medallion Signature Guarantee (MSG) is a special stamp used to certify the authenticity of a signature authorising the transfer of securities, such as US or Canadian shares. It protects against forgery and is recognised by North American financial institutions and transfer agents.
Is a Medallion Signature Guarantee recognised in the US and Canada?
Yes. Medallion Signature Guarantees are recognised by transfer agents in both the United States and Canada. They are required to process many securities transactions, especially when initiated from outside North America.
Why is a Medallion Signature Guarantee required?
It is a statutory requirement for many cross-border securities transactions. The guarantee limits the risk of financial loss due to forgery or fraud and ensures the authenticity of the person authorising the transaction.
How does Share Data provide Medallion Signature Guarantees?
As a STAMP member, Share Data Ltd is authorised to issue Medallion Signature Guarantee stamps directly. This means clients do not need to work through a US-based financial institution or obtain a Power of Attorney, reducing both delays and costs.
How long does it take to receive the Medallion Signature Guarantee?
Share Data Ltd offers a 24-hour turnaround upon receipt of all required documentation. Additional time may be needed if translation services or further verification are required.