The Medallion Guarantee has a number of different names, including the Medallion Stamp, the Medallion Signature, and the Gold Medallion – however, whatever you choose to call it, it is important to know what it is all about, and what it means for you.
The Medallion Guarantee was introduced after the atrocities of 9/11 in a bid to increase security. It has to be obtained before any shares from either American or Canada can be passed to a beneficiary. The Medallion Guarantee is a stamp applied to a stock transfer document with a bar code, and it is used to help prevent cross-border fraud. Simply put, it’s a way for the institution who issues the shares to check and confirm that they are the real thing. Once the Medallion supplier has put their stamp on the shares it confirms that the person who singed the stock transfer form is genuine, they will accept all liability if anything is shown to be fraudulent after all.
So why would you need to transfer shares in this way?
One reason is that they may have been purchased by an American or Canadian company after they had originally been bought by a British company. This would mean that the shares were now held by a foreign company, and if the person who bought them dies, and the beneficiary chooses to have them transferred into their own name, a Medallion Guarantee will be required (assuming that the shares are with a North American company and the beneficiary is British).
The Medallion Guarantee is not the only thing that will be needed when someone wants to transfer foreign shares after the owner has died – these additional documents include the original stock certificates, an inheritance tax waiver, an affidavit to prove that the deceased was not a resident or citizen of America, and a copy of the death certificate – but it is the first one that will be required; without the Medallion Guarantee, nothing else can be done
