Medallion Signature Guarantees: What Australians Can Do Instead

Australians usually cannot obtain a Medallion signature guarantee locally. It is a US securities-industry stamp issued only by participating financial institutions, mostly in the United States and Canada. A notarial commission does not authorise the stamp. Start by asking the transfer agent for its written procedure for an overseas holder.

Key takeaways

• A Medallion signature guarantee is not a notarial 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, issue the stamp. Being a notary or Justice of the Peace does not confer that authority.
• 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 is a Medallion stamp hard to get in Australia?

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 is a Medallion signature guarantee?

The US Securities and Exchange Commission's Investor.gov guidance explains that the guarantee is used for transfers of securities held in certificate or registered form. It helps deter forged transfers. The guaranteeing institution accepts liability risk if the signature proves forged, which is why transfer agents may require 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 can't a notary issue the stamp?

An Australian notary may identify you, witness a signature and record the act in a notarial certificate. The certificate describes what the notary did; it does not make the notary financially responsible for the securities transfer.

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 notarial commission alone does not authorise the stamp either. This is not a gap in Australian practice; it is a different financial guarantee. See how Australian and US notaries differ.

What can an Australian holder 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 examples, not universal alternatives. The receiving authority sets its own rules. Ask in writing, quote your holder or account number, and request the exact form and wording. Do not book a notary until you have that answer.

2. Move the holding into a brokerage account

Where shares are held directly on a register, a transfer into an Australian or US brokerage account may be practical. The broker may handle some paperwork with the agent. It can still require a Medallion guarantee, so ask both organisations before opening or funding an account.

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 does a US form accept a notary?

Not every US form that mentions signature certification requires a Medallion stamp. Some expressly permit a notary. For example, the current TreasuryDirect FS Form 1522 permits a notary or certifying officer when certification is required. It currently waives certification when the bonds' redemption value totals one thousand US dollars or less and specified identification is enclosed.

Other Treasury forms expressly reject notarial certification, so do not generalise from that example. Read the exact form revision and ask the receiving authority how an Australian notarisation must be authenticated, if at all.

Where does an Australian notary fit?

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.

How much does the alternative process cost?

There is no standard Australian price because the route is set by the transfer agent. Possible components include the notary's attendance and certificate, certified copies, travel or extra signers, DFAT legalisation, tracked international delivery, brokerage charges and professional tax or estate advice. A participating financial institution may also apply its own eligibility rules or fee for a genuine Medallion guarantee.

Ask the agent to confirm every required document before requesting quotes. If it accepts notarisation, send the complete unsigned form and written instructions when requesting a price for our document notarisation service.

Official sources

• Investor.gov: Medallion signature guarantees
• TreasuryDirect: signature certification inside and outside the United States

What should you check before signing?

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.

Related questions

• How do I transfer overseas shares from Australia?
• What does a notary do when witnessing a signature?
• Can I get an Australian document notarised from overseas?
• How do I apostille a document for the USA?
• Can a notary witness my signature on a foreign form?

Has a US agent approved a notarial alternative? Send us its letter, the unsigned form, your location, number of signers and deadline. We will explain the notarial and DFAT steps and quote before you book.