Medallion Signature Guarantee Stamp

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Aug 14, 2006 3:35 pm

Can I get some feedback on broker dealers that allow registered reps to have a Medallion Signature Guarantee Stamp and what are the costs related and any recordkeeping requirements?  I am looking for a firm and was wondering if this is a normal option for a rep or if this is very difficult for a bd to offer.


Any help would be appreciated.


Aug 14, 2006 3:53 pm

Why in the world do you want one?

Aug 14, 2006 5:15 pm
NASD Newbie:

Why in the world do you want one?

Aug 14, 2006 5:18 pm
NASD Newbie:

Why in the world do you want one?


So your clients don't go the the bank for a signature guarantee on documents that you are using to transfer in stock or change names on stock accounts at the transfer agent etc.   If they go to the bank with these types of transactions they are likely to be press ganged by the New Accounts desk clerk to go to the bank broker. 


Just one less chance for somebody else to scoop up our customers from us.


My B/D does this in-house. I simply fill out a form stating that I have guaranteed the signature and the operations area stamps the clients document when they get it for processing.

Aug 14, 2006 5:19 pm

I have many prospects who are transferring money from one account to a new account (from one custodian to a new custodian) and many times their signatures must be guaranteed.  Thus I have to take them to a commercial bank to get the signature guaranteed. 


Some subscription agreements and insurance applications have a place for a signature guarantee.  If I meet with the client to get everything signed, we still have to take care of the signature guarantee.  It is very time consuming to have to meet the client and then find a commericial bank that will guarantee their signature to complete the paperwork.


Make sense?


Aug 14, 2006 5:21 pm
babbling looney:
NASD Newbie:

Why in the world do you want one?


So your clients don't go the the bank for a signature guarantee on documents that you are using to transfer in stock or change names on stock accounts at the transfer agent etc.   If they go to the bank with these types of transactions they are likely to be press ganged by the New Accounts desk clerk to go to the bank broker. 


Just one less chance for somebody else to scoop up our customers from us.


My B/D does this in-house. I simply fill out a form stating that I have guaranteed the signature and the operations area stamps the clients document when they get it for processing.

Aug 14, 2006 5:22 pm

When you are an OSJ with LPL you can get one $100 a year covers the insurance for it. And Yes you want this done in house!

Aug 14, 2006 5:28 pm
superdana:

My B/D does this in-house. I simply fill out a form stating that I have guaranteed the signature and the operations area stamps the clients document when they get it for processing.


That sounds like it's illegal.

Aug 14, 2006 5:33 pm
NASD Newbie:
superdana:

My B/D does this in-house. I simply fill out a form stating that I have guaranteed the signature and the operations area stamps the clients document when they get it for processing.


That sounds like it's illegal.



It's legal.

Aug 14, 2006 5:36 pm
Starka:
NASD Newbie:
superdana:

My B/D does this in-house. I simply fill out a form stating that I have guaranteed the signature and the operations area stamps the clients document when they get it for processing.


That sounds like it's illegal.



It's legal.



And you're a graduate of what law school?


It sounds just as illegal as somebody doing a trade with a person in a state that they're not registered in, but making it "legal" by allowing somebody who is registered in the state to process the trade.

Aug 14, 2006 5:41 pm
NASD Newbie:
Starka:
NASD Newbie:
superdana:

My B/D does this in-house. I simply fill out a form stating that I have guaranteed the signature and the operations area stamps the clients document when they get it for processing.


That sounds like it's illegal.



It's legal.



And you're a graduate of what law school?


It sounds just as illegal as somebody doing a trade with a person in a state that they're not registered in, but making it "legal" by allowing somebody who is registered in the state to process the trade.



You don't have to graduate law school to speak with an attorney.

Aug 14, 2006 5:44 pm
NASD Newbie:

That sounds like it's illegal.



For somebody who claims to know so g-d d-mn much, you sure don't know a hell of a lot.


It's perfectly legal, and the very practice, is exactly what the medallion guarantee stamp is for you nit-wit.


Those of us actually WORKING in the field, guarantee, and verify the client, Mr. Joe Blow did in fact, sign the document, then Bob Jones in processing places the medallion stamp on the document, then forwards it on per your directions to it's destination.


You know NASD, I think you are someone who'd really benefit from a good a*s whoopin.

Aug 14, 2006 5:46 pm

Wow....then I guess my B/D has been breaking the law for many years with thousands upon thousands of documents.  They must be sooooo stupid.


Shhhhhhh!! don't tell.

Aug 14, 2006 5:49 pm

It would seem that Newbie has once again flown his true colors. 

Aug 14, 2006 5:50 pm
Devoted SA:
NASD Newbie:

That sounds like it's illegal.



For somebody who claims to know so g-d d-mn much, you sure don't know a hell of a lot.


It's perfectly legal, and the very practice, is exactly what the medallion guarantee stamp is for you nit-wit.


Those of us actually WORKING in the field, guarantee, and verify the client, Mr. Joe Blow did in fact, sign the document, then Bob Jones in processing places the medallion stamp on the document, then forwards it on per your directions to it's destination.


You know NASD, I think you are someone who'd really benefit from a good a*s whoopin.



The guarantee reads something like, "Personally appeared before me, Mrs. Jane Doe.........."


If Mrs. Doe did not personally appear before the person guaranteeing the signature it sounds like it's not a legal guarantee.


You may not believe this but everybody is not honest--and a dishonest person might well forge somebody else's name and send it off to a third party to be guaranteed.  If they guaranteed the signature they would be assisting in a fraud.

Aug 14, 2006 5:52 pm

The broker signing the document is assuming the responsibility.  It's clearly spelled out in the document.

Aug 14, 2006 6:01 pm
NASD Newbie:
Devoted SA:
NASD Newbie:

That sounds like it's illegal.



For somebody who claims to know so g-d d-mn much, you sure don't know a hell of a lot.


It's perfectly legal, and the very practice, is exactly what the medallion guarantee stamp is for you nit-wit.


Those of us actually WORKING in the field, guarantee, and verify the client, Mr. Joe Blow did in fact, sign the document, then Bob Jones in processing places the medallion stamp on the document, then forwards it on per your directions to it's destination.


You know NASD, I think you are someone who'd really benefit from a good a*s whoopin.



The guarantee reads something like, "Personally appeared before me, Mrs. Jane Doe.........."


If Mrs. Doe did not personally appear before the person guaranteeing the signature it sounds like it's not a legal guarantee.


You may not believe this but everybody is not honest--and a dishonest person might well forge somebody else's name and send it off to a third party to be guaranteed.  If they guaranteed the signature they would be assisting in a fraud.



The guarantee reads something like, "Personally appeared before me, Mrs. Jane Doe.........."


No it doesn't say any such thing. You are confusing that with a notarization. I am a notary public and have been for over 20 years. When working at a bank I routinely used the medallion guarantee stamp a zillion (ok not quite that many) times.  There is no wording or official medallion document that is attached.  We just stamp on the form where the form indicates. 


The form that I sign states that I have seen the clients sign the forms, they are of legal age and capacity.  It further indemnifies and holds my B/D harmless and so on.  It basically puts the legal burden back on me.   I am signing the form and taking the legal responsibility that the signatures are accurate and legal. 


The medallion stamp is closely held by the designated Bank employee and by the designatied B/D operations employee.  If the bank employee commits fraud or lets someone else use the stamp then thaat person is liable.  If I fake a sig guarantee form, then I am liable.

Aug 14, 2006 6:03 pm
Starka:

The broker signing the document is assuming the responsibility.  It's clearly spelled out in the document.


The person who actually guarantees the signature is not relieved of their responsibility.


It's that "Personally appeared before me..." wording that is the problem--if the signature was not affixed to the document in the presence of the individual who is going to guarantee the statement is false--and a false statement is not legal.


It is my understanding that a the difference between a notary and a signature gurantee is that a notary is essentially saying, "This paper was blank when I first saw it, then I saw somebody write the name that is here."


While a signature guarantee is far more formalized--for example I believe that in order to guarantee a widow's signature the person doing the guarantee must know that the woman is in fact a widow.


Far too formal for the casual way y'all are talking about it being done.


I suggest that what you're doing is actually illegal, but that people look the other way because to not do so would require each independent office to get a medallion.


Is there a wirehouse broker out there who will say that their firm's policy is to just bring in the certificates already signed and that somebody at the branch--normally the ops manager--will guarantee the signature and apply the medallion?


Or does the ops manager want to meet the customer, and watch them sign the certificate?

Aug 14, 2006 6:04 pm

It's that "Personally appeared before me..." wording that is the problem-


No such wording exists in conjunction with a medallion guarantee stamp!  Period.  You are confused.

Aug 14, 2006 6:08 pm

It is my understanding that a the difference between a notary and a signature gurantee is that a notary is essentially saying, "This paper was blank when I first saw it, then I saw somebody write the name that is here."


That is not quite right either.  A person can sign a document away from the sight of the notary and then have another person bring the document in for notarization.  That is called a subscribing witness.