Medallion Signature Guarantees: What Australians Can Do Instead

Australians usually cannot get a Medallion signature guarantee here, because it is a US financial-industry stamp issued by member institutions, overwhelmingly in the United States and Canada. A notary cannot provide one. What you can usually do instead is ask the US transfer agent or institution for its procedure for overseas holders, which often involves an Australian notary.

Key takeaways

• A Medallion signature guarantee is not a legal act. It is a stamp from a participating financial institution that accepts liability if the signature proves forged.
• Only members of the three Medallion programs, STAMP, SEMP and MSP, hold the stamp. No Australian notary, and no US notary, is a member.
• The US Securities and Exchange Commission's own advice, if you cannot get one, is to contact the transfer agent or issuing company.
• Many agents have a route for holders outside the United States, often a notarised signature, sometimes with a DFAT apostille. Get it in writing first.
• Some US forms, such as the Treasury's savings bond redemption form, accept a notary's seal as an alternative.

Why nobody here seems able to help

If a US transfer agent, fund or financial institution has told you your signature needs a Medallion signature guarantee, you have probably already discovered the problem. Your bank has not heard of it, and a notary will tell you it is not something a notary provides.

That is not a failure of the people you asked. A Medallion guarantee is a US financial-industry stamp, not a legal act, and the institutions that issue it are overwhelmingly in the United States and Canada. The organisation asking for it usually has another route for holders overseas. This page explains what the guarantee is, and the alternatives that work from Australia.

What a Medallion guarantee is

According to the US Securities and Exchange Commission's investor education site, a Medallion signature guarantee is required to transfer or sell securities held in certificate or registered form. It makes it harder for someone to steal your securities by forging your signature. The guaranteeing institution is, in effect, taking on liability if the signature turns out to be forged, which is why transfer agents insist on it.

It is issued by financial institutions that belong to one of three Medallion programs:

• STAMP, the Securities Transfer Agents Medallion Program, which the SEC's site describes as including a large number of US and Canadian financial institutions;
• SEMP, the Stock Exchanges Medallion Program;
• MSP, the New York Stock Exchange Medallion Signature Program.

The SEC's site advises getting the guarantee from an institution you already do business with. Institutions generally will not guarantee the signature of someone who is not their customer, because they are taking on the risk. That is also why a branch in the United States may still decline a walk-in customer from Australia.

Why a notary cannot give you one

An Australian notary witnesses your signature, confirms your identity and checks that you understand the document and sign freely. The notary then records that in a notarial certificate. A notary never certifies that the contents of a document are true, and does not take on financial responsibility for the transaction.

A Medallion guarantee goes further: a participating institution stamps the document and takes financial responsibility for the signature being genuine and authorised. Only members of the three programs have the stamp. No Australian notary is a member, and a notarial certificate is not a substitute unless the organisation asking for the guarantee says it will take one.

A US notary cannot give one either. This is not a gap in Australian notarial practice; it is a different kind of document. See how Australian and US notaries differ.

What you can do instead

Work through these in order. The first two resolve most cases.

1. Ask the organisation what it accepts from overseas holders

The SEC's site says that if you cannot obtain a Medallion guarantee, you should contact the transfer agent or the company that issued the securities. Many have a procedure for holders outside the United States. Depending on the agent and the amount involved, that might be:

• a signature notarised before a notary in your country, sometimes with an apostille;
• a signature guaranteed by your local bank, sometimes together with a notarised signature;
• an affidavit or indemnity in the agent's own form;
• a different procedure for smaller holdings.

These are the agent's own rules and they differ between agents. Ask in writing, quote your holder or account number, and ask for the exact wording or form they want. Do not book a notary until you have that answer.

2. Move the holding into a brokerage account

Where the shares are held directly on a register, transferring them into a brokerage account, Australian or US, can be simpler than a registry transfer, and the broker may handle the paperwork with the agent. Whether this avoids the guarantee depends on the broker and the agent; ask both.

3. Use an overseas branch of a US or Canadian institution you bank with

The SEC's site notes that you may be able to get a Medallion guarantee from an overseas branch of a US or Canadian bank, broker or credit union with which you do business. If you have an account with such an institution that has a presence in Australia, ask it directly.

4. Use a US account next time you are there

If you still have a US bank or brokerage account and will be in the United States, a branch there can provide the guarantee in person. Some people find this is the only practical option, particularly for larger transfers.

When the form says "Medallion or notary"

Not every US form that mentions a Medallion guarantee requires one. Some take a notarised signature as an alternative. The US Treasury's form for redeeming paper savings bonds is an example: it allows a notary's seal, a financial institution's seal or a Medallion stamp, and for small amounts no certification at all.

For US savings bonds specifically, the US Embassy in Australia lists several options, including signing before a US consular officer, or signing before an Australian notary and then having the document apostilled by the Department of Foreign Affairs and Trade. The US Treasury publishes its own list of who may certify signatures abroad. Read your form's instructions carefully, because the options differ between forms.

Where an Australian notary fits

Where an Australian notary is acceptable, the process is ordinary: bring the form unsigned, with your passport, sign in front of the notary, and check whether the recipient wants an apostille from DFAT on the notary's signature. Only DFAT can issue an apostille, and the United States is a member of the Apostille Convention; confirm on the HCCH status table on the day. See apostilles for the United States.

Situation	Who can help	Notary involved?
Form requires a Medallion stamp, no alternative given	The transfer agent's overseas holder team	Only if the agent offers a notarised route
Form allows a notary as an alternative	An Australian notary, then DFAT if an apostille is asked for	Yes
Paper US savings bonds	Options listed by the US Embassy and US Treasury	One of several options
You bank with a US or Canadian institution with a branch here	That institution	No
Name on the account differs from your passport	A notary, for certified copies of linking documents	Often

If the securities belonged to someone who has died, the agent will usually also want evidence of the estate, such as a grant of probate or letters of administration, in a form it specifies. A certified copy from the court that issued the grant is a court document, which DFAT can generally apostille directly; ask the agent what it wants and confirm with DFAT. Whether you are entitled to the shares under the will or the law of the estate is a question for a solicitor. See documents for an overseas inheritance.

Before you sign anything

1. Get the recipient's requirements in writing. "We need a Medallion" is often a default answer from a call centre. Ask the transfer agent's international or overseas holder team specifically.
2. Check the name on the account. It must match your current passport. If it does not, such as a maiden name or a missing middle name, the agent will also want evidence linking the two, and that is where a notary can genuinely help with certified copies.
3. Think about tax before you sell or transfer. A US tax form, such as a W-8BEN, may also be needed, and the sale may have Australian tax consequences. Speak to a tax adviser.
4. Keep copies of everything you send, and send originals by a tracked service.

Here is an illustration, not a real case

A Wollongong retiree inherits a small parcel of US shares held on a register, and the transfer agent's letter asks for a Medallion guarantee on the stock power. Her bank has never heard of it. She emails the agent's overseas holder team and asks what it will take from a holder in Australia. It replies with its own affidavit form, which it will take signed before a notary, with an apostille, together with a court-certified copy of the grant of probate. She signs the unsigned affidavit before a notary, DFAT apostilles both, and she sends them by tracked post. Her accountant handles the tax forms.

In short

A Medallion signature guarantee is a US financial-industry stamp that only member institutions can give, and almost none are in Australia. A notary cannot provide one. Ask the transfer agent in writing for its procedure for overseas holders; many offer a notarised signature, sometimes with a DFAT apostille. Check whether your form allows a notary as an alternative, consider moving the holding to a broker, and get tax advice before you sell.

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Has a US agent told you what it will take instead of a Medallion stamp? Send us its letter, and we will explain each step before you book.