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WHAT IS A MEDALLION STAMP?

A barcoded stamp which has an invisible security compound in the ink that can be read by special “Stamp 2000 Plus” scanners used by transfer agents and investment houses providing certification that the signature being guaranteed is genuine: this is a statutory requirement when transferring or administering shareholdings and other investments within and outside North America. The medallion acts to limit the liability and loss by safeguarding against forged signatures which began after the 9/11 disaster to prevent cross border fraud.

N.B. A Notary Public is unable to provide this service as it can only be offered by one of three recognised medallion signature guarantee programs:

  • STAMP  (Securities Transfer Agents Medallion Program)

  • SEMP  (Stock Exchanges Medallion Program)

  • MSP  (New York Stock Exchange Medallion Signature Program)

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DOES THE VALUE OF THE ASSET MATTER?

Yes, the medallion stamp that operators possess has a maximum surety value assigned, which means some shareholders with higher value holdings may struggle to find a medallion service provider outside the US and Canada.
 

Stamps have a prefix that indicates their surety limit, which limits how much they can guarantee the transaction for:

 

  1. A: $1,000,000

  2. B: $750,000

  3. C: $500,000

  4. D: $250,000

  5. E: $100,000

  6. F: $100,000 (Credit Unions per transaction)

  7. X: $2,000,000

  8. Y: $5,000,000

  9. Z: $10,000,000

In addition, any transfer agent who is a member of the Securities Transfer Association receives $4,000,000 insurance against stolen or counterfeit medallion stamps.

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