Most local banks and credit unions offer signature guarantee services for customers who need to transfer securities, typically requiring an account relationship and valid identification.
Signature guarantees at local banks
Local banks provide signature guarantees through programs like Medallion Signature Guarantee to verify the authenticity of signatures on securities transfers, protecting against fraud.
A signature guarantee is a special certification provided by financial institutions that verifies the identity of someone signing securities documents and guarantees the signature is genuine. Unlike a notary public, which only verifies identity, a signature guarantee involves the institution accepting financial liability if the signature proves fraudulent. Most local banks and credit unions participate in the SEC-recognized Medallion Signature Guarantee program, which includes three tiers: the Securities Transfer Agents Medallion Program (STAMP), the Stock Exchanges Medallion Program (SEMP), and the New York Stock Exchange Medallion Signature Program (MSP). According to FINRA, these programs ensure that transfer agents can rely on the guarantee when processing stock, bond, or mutual fund transfers. To obtain a signature guarantee at your local bank, you typically need to be an existing customer with an established relationship, present government-issued photo identification, and bring the unsigned securities certificates or transfer forms. Investopedia notes that fees vary by institution but are often waived for account holders, while non-customers may face charges of $25 to $100 or be declined entirely. It is advisable to call ahead and confirm your branch offers the specific Medallion program required by your transfer agent, as not all branches participate in every tier.
