Signature Guarantee Policy

As many of you may be aware, FIG is going through a time of transition with our Signature Guarantee policy.  We are working diligently to implement a policy that is in the best interest of all parties involved and hope to be able to communicate this within the coming days.   

In the interim we want to provide you with a synopsis of the Medallion Signature Guarantee program as well as lists of vendors that require a Signature Guarantee stamp for outgoing transfers and carriers that currently provide these.  Here at FIG we want to help you provide exemplary service to your clients.  We believe that with a shared understanding of this information we will all be in a position to offer the best service possible.

FREQUENTLY ASKED QUESTIONS

Q: What is the difference between a Medallion Signature Guarantee and a Notary?
A Notary Public is a person commissioned by a State to serve citizens as an impartial witness to a transaction. A Notary is a public officer who executes acknowledgements of deeds or writings in order to render them available as evidence of the facts therein contained; and administers oaths and affirmations as to the truth of statements contained in papers or documents requiring the administration of an oath.

A Medallion Guarantee is used only in situations involving the sale or transfer of securities. The Medallion indicates that the financial institution providing the stamp has been defined by SEC Rule 17-Ad15 as an eligible Guarantor and has met all STAMP Program qualifications, including submission of a STAMP Surety Bond. By participating in the Medallion Program, including compliance with Program Regulations, financial institutions can guarantee customer signatures with the assurance that their guarantees will be accepted for processing by Transfer Agents. A Medallion Guarantor bears financial liability should the signature prove to be fraudulent.
Transfer agents can refuse to accept a signature guarantee from an institution that does not participate in the Medallion program.

Q: What does it mean when a transaction receives a Medallion Guarantee?
Each time a Medallion is used, the Guarantor is making the warranties of Section 8-306 of the Uniform Commercial Code (UCC). The UCC defines a guarantee of signature as a warranty, with respect to the signature of the endorser of a security or an originator of an instruction regarding a security, that, at the time of signing, (a) the signature was genuine; (b) the signer was an appropriate person to sign, or if the signature was by an agent, the agent had actual authority to act on behalf of the appropriate person; and (c) the signer had the legal capacity to sign. Section 8-306 also states that 'the guarantor does not otherwise warrant the rightfulness of the transfer.'

Q: What is a Security?
Securities are shares, participations, or other interests in the property of an enterprise of an Issuer. A Security is represented by an instrument which is in 'Book entry' or certificated form and is issued in the name(s) of a person(s) entitled to the Security or to certain rights represented by the Security.
The instrument must be commonly traded on securities exchanges or in securities markets, or commonly recognized as a medium for investment where it is issued or traded. 

Q: On what documents can the Medallion Guarantee be used?
The Medallion Signature Guarantee should be used only to guarantee an endorsement that authorizes the sale, assignment, transfer, or redemption of a security. Examples include, but are not limited to the following: Mutual Fund Liquidation request, Transfer or sale of shares of stock and U.S. Savings Bond redemptions.

Q: What documents should not be guaranteed?
Medallions are not intended for use in guaranteeing or certifying routine administrative changes such as, address or TIN updates, account number changes and the like. Examples include, but are not limited to the following: 401K Enrollment Forms, Term Life Insurance Policies, Tax Returns, Mortgage or Car Loan Documents.  Of note, Medallions should not be used when transferring funds from one insurance product to another insurance product.  For example, a 1035 exchange from a fixed annuity to a fixed indexed annuity would not need to be Medallion Guaranteed.

HOW DO I OBTAIN A MEDALLION SIGNATURE GUARANTEE?

The recommended method for obtaining a Signature Guarantee is to assist your client with this in person.  The preferable method is to take your client (or suggest he/she go on his own) to his/her local financial institution where an established relationship exists and request the Signature Guarantee be performed in person.  Most banks will provide a Signature Guarantee.  This is the preferred method because you are protecting yourself from potential liability and your client can rest assured that their assets are being handled according to their wishes.  This is essentially an insurance policy on the validity of the transaction.

WHICH CARRIERS PROVIDE A SIGNATURE GUARANTEE IF YOU ARE UNABLE TO OBTAIN ONE?

Allianz

• Require a clear copy of a valid government issued photo ID
• No additional paperwork required
• Can signature guarantee any dollar amount
• May take an extra 24 hours to process your business

American Equity

• Require a clear copy of a valid government issued photo ID
• Require completed Signature Guarantee Witness Form
• Can only signature guarantee business written by Gold Eagle Members ($1M in production)
• May take an extra 48 hours to process your business

Aviva
Transfers under $250,000:

• Require a clear copy of a valid government issued photo ID
• Require completed Signature Guarantee Request form
• May take an extra 48 hours to process your business

Transfers over $250,000:

• Require a clear copy of a valid government issued photo ID
• Require a copy of the client’s account statement showing the current registration
• Require completed Signature Guarantee Request form
• May take an extra 48 hours to process your business

Midland

• Require Verification of Identify form (included in application package)
• Can only Signature Guarantee business written by producers at the Premier Club level or higher ($1M in paid premium for the calendar year)
• No additional processing time required

Note: The following carriers do not provide a Medallion Signature Guarantee:

• North American
• Equitrust
• Forethought

WHICH COMPANIES REQUIRE A MEDALLION SIGNATURE GUARANTEE?

Every financial institution has a different policy regarding the requirement for a Signature Guarantee.  The following list of vendors represents the companies that to our knowledge require a Signature Guarantee upon the sale, assignment, transfer, or redemption of a security. 

*Of note, this list may not be exhaustive but has been compiled with information currently available to FIG.  If a question arises pertaining to the need for a Signature Guarantee, a quick call to the transferring company will confirm the current policy for such transactions.

Providing exemplary service to our agents is the foundation of FIG.  Please know that through this transition we will do our best to continue to provide the high level of service you are accustomed to.  We appreciate your patience as we work through this process and welcome the opportunity to assist you with any issue or concern that arises with regard to the Medallion Signature Guarantee program.  For assistance, please contact 800.527.1155 for a FIG Marketer.