A transfer agent or brokerage that asks for a medallion signature guarantee will not accept a notarized signature in its place. The two serve different purposes and come from different providers. A notary public verifies the identity of a signer and witnesses the signature, while a medallion signature guarantee is issued by a participating financial institution that accepts financial responsibility if the signature later proves to be forged or unauthorized. Florida notaries are not permitted to provide signature guarantees, so the two cannot be used interchangeably.
Confusion between them often surfaces at a difficult moment, such as settling an estate that holds stock certificates or moving an inherited brokerage account. Understanding which document the institution requires saves considerable time.
Purpose of a Medallion Signature Guarantee in Securities Transfers
A medallion signature guarantee is a stamp and signature placed on a securities-related document by an authorized officer of an eligible financial institution. It assures the transfer agent that the person signing is the registered owner or holds legal authority to act for the owner. Because securities can be transferred permanently once a request is processed, transfer agents rely on the guarantee to shift the risk of fraud to the institution that provided it.
Each medallion stamp carries a coverage limit. The guaranteeing institution is liable for losses arising from a forged or unauthorized signature up to that amount. That financial exposure is why institutions review requests carefully and often decline to guarantee signatures for people who are not established customers.
Three Recognized Medallion Signature Guarantee Programs
Medallion guarantees are issued through three recognized programs:
- The Securities Transfer Agents Medallion Program (STAMP), the most widely used, which includes many commercial banks, credit unions and broker-dealers
- The Stock Exchanges Medallion Program (SEMP), associated with firms connected to regional stock exchanges
- The New York Stock Exchange Medallion Signature Program (MSP), associated with NYSE member firms
Not every branch of a participating institution offers the service. Some limit it to particular staff or locations. Calling ahead to confirm availability, coverage limits and documentation requirements is a practical first step.
Timing also deserves attention. Transfer agents commonly reject forms where the guarantee stamp is incomplete, illegible or applied by an institution whose coverage limit is lower than the value of the transaction. When a guarantee is rejected, the signer must usually obtain a fresh stamp on a newly completed form, which can delay an estate distribution or account transfer by several weeks. Confirming the transaction value before the appointment allows the institution to apply a stamp with sufficient coverage.
The Role of Notarization in Verifying Signatures and Preventing Fraud
A notarization serves a broader range of documents. Before completing the notarial act, the notary confirms the signer’s identity through satisfactory evidence, observes the signing or receives the signer’s acknowledgment and completes a certificate that records the act.
Notarization deters fraud by creating an impartial record of who signed and when. The notary does not guarantee the signer’s authority over an account or accept financial liability for the underlying transaction. Notarization therefore supports the broader process of document authentication, while a medallion guarantee addresses the specific risks of transferring securities.
Differences Between Medallion Signature Guarantees and Notarization
The distinctions fall into a few clear areas:
- Provider: a commissioned notary public for notarization; an eligible bank, credit union or broker-dealer in a medallion program for a signature guarantee
- Purpose: identity verification and witnessing for notarization; assurance of ownership and authority for securities transfers for a medallion guarantee
- Liability: a notary does not insure the transaction, while the guaranteeing institution accepts liability up to the stamp’s coverage limit
- Availability: notarization is widely available, including mobile and remote online options, whereas medallion guarantees are frequently restricted to existing customers
Situations That Require a Medallion Signature Guarantee or Notarization
Medallion signature guarantees are typically requested when stock certificates are transferred to a new owner, when shares are re-registered after a name change, when securities are moved from a deceased owner’s account to an estate or beneficiary and when certain mutual fund redemptions exceed a set amount. The transfer agent or brokerage will specify the requirement on its own forms.
Notarization is required for a wider set of documents, including deeds, powers of attorney, affidavits and many estate forms. Estate transfers often involve both. An executor may need a notarized affidavit of domicile to establish the decedent’s residence, together with a medallion guarantee on the stock power or transfer instruction itself. Where a form simply states “signature guarantee” without specifying a medallion, the signer should confirm with the requesting institution which type it will accept, since some accept a non-medallion bank guarantee for lower-risk requests.
Preparing to Obtain a Medallion Guarantee
Institutions generally expect the signer to arrive with documents ready for review. Typical requirements include:
- A current government-issued photo ID
- The unsigned transfer form or stock power provided by the transfer agent
- Evidence of ownership, such as a recent account statement or share certificate
- Proof of authority when signing for another person, such as letters of administration, a trust certificate or a power of attorney
- Details of the transaction value, so the institution can apply the correct coverage level
The document should remain unsigned until the institution’s officer witnesses the signature. Executors and trustees who were appointed through notarized instruments should bring those documents as well, because the institution will verify the authority behind the signature.
When a Notary Is the Right Choice
Many related documents still require a notary rather than a medallion guarantee, including affidavits for lost certificates, estate declarations and powers of attorney used to manage investment accounts. A florida notary public can complete these notarial acts promptly, while the medallion guarantee itself is obtained separately from a participating institution.
For family members managing an estate from a hospital, care facility or home, a mobile notary appointment allows supporting documents to be notarized without travel, leaving the medallion step for the bank or brokerage.
Final Thoughts
Notary Plus More notarizes affidavits, powers of attorney and estate documents for Florida residents through in-office, mobile and remote online appointments.
While the team does not issue medallion signature guarantees, it can complete the notarized documents that often accompany a securities transfer, helping executors and account holders prepare a complete packet before visiting their financial institution.
