Medallion signature guarantee vs. Medallion guarantee stamp

What’s the Difference? Trick Question – they are the same thing!

A medallion signature guarantee is referred to by many different names but its purpose is the same – you need it to transfer securities. A medallion signature guarantee, commonly abbreviated as MSG, is a form of authentication provided by financial institutions to prevent fraud.

The placement of a medallion signature guarantee allows the transfer or sale of securities, change of ownership name on an account, or to replace lost or damaged certificates.

The financial institution issuing a medallion signature guarantee must be authorized to do so through acceptance of an official securities guarantee program. These programs are known as medallion programs:

• The Securities Transfer Agents Medallion Program (STAMP) whose participants include financial institutions based in the U.S. and Canada.
• The Stock Exchange Medallion Program (SEMP) which supports firms belonging to regional stock exchanges and trust and clearing companies.
• The New York Stock Exchange Medallion Signature Program (MSP) for NYSE firms that choose to become members.

When we provide the guarantee, it certifies that:

1. You are who you claim to be,
2. You have the rights to transfer the assets

Once the issuing financial institution confirms these factors, the medallion stamp would then allow the stock transfer agent to review the paper work for various types of transactions such as the sale of physical securities certificates, transfer of stocks to a beneficiary upon death of the owner, change in ownership status or name, gifting of stocks, etc.