Medallion Signature Guarantee Stamp

43 replies [Last post]
superdana's picture
Offline
Joined: 2006-08-14

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.
 

NASD Newbie's picture
Offline
Joined: 2005-08-01

Why in the world do you want one?

superdana's picture
Offline
Joined: 2006-08-14

NASD Newbie wrote:Why in the world do you want one?

babbling looney's picture
Offline
Joined: 2004-12-02

NASD Newbie wrote: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.

superdana's picture
Offline
Joined: 2006-08-14

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?
 

superdana's picture
Offline
Joined: 2006-08-14

babbling looney wrote:
NASD Newbie wrote: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.

Greenbacks's picture
Offline
Joined: 2004-12-21

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!

NASD Newbie's picture
Offline
Joined: 2005-08-01

superdana wrote:
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.

Starka's picture
Offline
Joined: 2004-11-30

NASD Newbie wrote:
superdana wrote:
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.

NASD Newbie's picture
Offline
Joined: 2005-08-01

Starka wrote:NASD Newbie wrote:
superdana wrote:
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.

Starka's picture
Offline
Joined: 2004-11-30

NASD Newbie wrote:Starka wrote:NASD Newbie wrote:
superdana wrote:
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.

Devoted SA's picture
Offline
Joined: 2006-03-28

NASD Newbie wrote:
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.

babbling looney's picture
Offline
Joined: 2004-12-02

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.

Starka's picture
Offline
Joined: 2004-11-30

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

NASD Newbie's picture
Offline
Joined: 2005-08-01

Devoted SA wrote:NASD Newbie wrote:
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.

Starka's picture
Offline
Joined: 2004-11-30

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

babbling looney's picture
Offline
Joined: 2004-12-02

NASD Newbie wrote:Devoted SA wrote:NASD Newbie wrote:
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.

NASD Newbie's picture
Offline
Joined: 2005-08-01

Starka wrote: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?

babbling looney's picture
Offline
Joined: 2004-12-02

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.

babbling looney's picture
Offline
Joined: 2004-12-02

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.

NASD Newbie's picture
Offline
Joined: 2005-08-01

babbling looney wrote:
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.

My next door neighbor is a notary.  She has a rubber stampt that says:
Marsha ReynodsNotary PublicMy Commission Expires November 30, 2006
That is all she stamps on a document along with her notary seal.
She doesn't look at an ID or anything else--if she sees the document being signed she'll stick her notary seal on it.
I suggest that the casual nature that you're talking about Signature Guarantees is nothing more than a business practice that is actually illegal, but that is followed anyway because to strictly stick to it would be unnecessarily burdensome.
There are rules that say that an order may not be placed unless an account has been accepted by a principal.  I know that orders can be processed before the account is accepted because I have done it--both as a broker and as a branch manager.
In other words rules are often bent.

hubbabubba's picture
Offline
Joined: 2006-08-03

where is the attorney who posted on the topic of name changes?  A hundred reps could rant ad naseum that they have used it-and legally, by the way ,and newbie still argues it illegal.  Jeez, does it take a lawyer to settle this in your head?  Or will you comment that he got his degree online so he's not really an attorney and you still know better.
You said you were a devils advocate, but you are not.  A devils advocate tries to challenge people paradigms.  You just try to piss people off. 
Its too bad, because you usually begin with a legitimate question, but you insist on antagonizing people in spite of all the evidence that undermines your argument.  A smart man knows when to give up.  You simply continue to bang your head into the wall in the hopes that the wall will give way.

Starka's picture
Offline
Joined: 2004-11-30

Newbie, are you sure you really worked in the brokerage industry? 
It doesn't seem like you know anything but the very basics, if that.

babbling looney's picture
Offline
Joined: 2004-12-02

She doesn't look at an ID or anything else--if she sees the document being signed she'll stick her notary seal on it.
Then your neighbor is an idiot.
If you don't personally know the signer, you must ID them. I get ID even though I have know people for years.  They don't mind.  In addition in my State if the transaction is related to property (deed of trust, grant deeds etc) then I also have to fingerprint the signer(s).  The notary is also supposed to determine if the signer has the capacity to sign.  For example someone with dementia being coerced to sign away accounts or property.   I have refused to notarize several times, just because I felt the person didn't know what they were signing.

NASD Newbie's picture
Offline
Joined: 2005-08-01

If a couple walks into a minister and says that they performed their own wedding ceremony in front of a mirror do you suppose the minister will legalize the marriage by signing the wedding license?
It does not make sense that a person who is swearing that a signature is bona fide is following the intent of the law by accepting a third party's word for it.

babbling looney's picture
Offline
Joined: 2004-12-02

babbling looney wrote:
She doesn't look at an ID or anything else--if she sees the document being signed she'll stick her notary seal on it.
Then your neighbor is an idiot.
If you don't personally know the signer, you must ID them. I get ID even though I have know people for years.  They don't mind.  In addition in my State if the transaction is related to property (deed of trust, grant deeds etc) then I also have to fingerprint the signer(s).  The notary is also supposed to determine if the signer has the capacity to sign.  For example someone with dementia being coerced to sign away accounts or property.   I have refused to notarize several times, just because I felt the person didn't know what they were signing.

I also forgot to say that I have to fill out a jurat or acknowlegement form to attach to the document if the document doesn't already contain that wording.   Documents from other States that don't contain the legal wording in my State, then I have to attach the legal form for my State.
I think you are just making stuff up.  You can't possibly be this out of touch with the business, if you ever were in it at all.

NASD Newbie's picture
Offline
Joined: 2005-08-01

Why do you suppose this industry requires signature gurantees, instead of notary seals, if it is so casual that those with the medallions will affix their gurantee based on hearsay?
Why not just let the customer stop off at their dry cleaner and get the documents notarized.

babbling looney's picture
Offline
Joined: 2004-12-02

       

Starka's picture
Offline
Joined: 2004-11-30

NASD Newbie wrote:
Why do you suppose this industry requires signature gurantees, instead of notary seals, if it is so casual that those with the medallions will affix their gurantee based on hearsay?
Why not just let the customer stop off at their dry cleaner and get the documents notarized.

Good idea!
Every time you post it becomes a little clearer why you're not a broker or even a middle manager any longer.

NASD Newbie's picture
Offline
Joined: 2005-08-01

NASD Newbie has been playing a game of semantics as much as anything.
I know that signatures are guaranteed all the time when the person isn't even there--hell that's what stock powers are for.
I also know that the legal system would have a field day with a forgery that had been guaranteed and I know that the individual who was empowered to affix the guarantee would not be absolved from their liability in the event that a dishonest broker forged a signature and sent it in with an affadavit.
It is so easy to get this group going.

babbling looney's picture
Offline
Joined: 2004-12-02

What....did you figure out how to Google and found out you were wrong?

hubbabubba's picture
Offline
Joined: 2006-08-03

You have such grand illusions of who you are in your head.  If you could only read your posts through the eyes of the other forum members, you would realize that your arguments are filled with so much hypocrisy and inconsistency its actually a joke. 
You are not clever. You are not nearly as intelligent as you believe.  You consistently drag a serious thread through the mud with your antagonistic attitude.  But from your post on dress code, I am sure you are wearing a dark suit while you bring that thread into a muddied mess.  Your dry cleaning bill must be outrageous!

NASD Newbie's picture
Offline
Joined: 2005-08-01

hubbabubba wrote:
But from your post on dress code, I am sure you are wearing a dark suit while you bring that thread into a muddied mess.  Your dry cleaning bill must be outrageous!

Nah, I'm wearing a golf shirt from Augusta and a pair of shorts from Bass Pro Shops--Nylon, very comfortable.
My shoes are from Bass--I bought six pairs of the same thing at an outlet along the highway.  Not smart for a New York apartment, but nobody sees them behind the couch.
I keep a 1993 Toyota with about 7,000 miles on a lot on 12th Avenue to run out and buy groceries in Jersey so I don't have to waste my money in Manhattan.
I'm the millionaire next door, you should hope you end up like me.

hubbabubba's picture
Offline
Joined: 2006-08-03

very unprofessional attire. 
 
I would never hope to be like you.  When I retire/semi-retire as a millionaire, I certainly would not spend my time online.  I have much higher expectations of myself.  The people who brag the most are usually the people who have the least to brag about. 
Time to wake up from your dream.

NASD Newbie's picture
Offline
Joined: 2005-08-01

hubbabubba wrote:
very unprofessional attire. 
 
I would never hope to be like you.  When I retire/semi-retire as a millionaire, I certainly would not spend my time online.  I have much higher expectations of myself.  The people who brag the most are usually the people who have the least to brag about. 
Time to wake up from your dream.

I spend a lot of time on line because I trade options and like to be nearby during market hours.
Then I spend time with my laptop watching the news.  Normally by 7:30 we're having dinner then it's out and about in the city so nice they named it twice.
There is not an intelligent person alive who doesn't wish they could live in New York for at least a year--take in a lot of shows, go to the museums, walk across the Brooklyn Bridge, share a bottle of wine on a blanket in Central Park, grab a dirty water dog on the way to a ball game, the list is endless.
 

Starka's picture
Offline
Joined: 2004-11-30

It's obvious that you've never seen them wash those dirt water dog carts out before the start of the day.
There's not an intelligent person alive who doesn't want out of New York at the end of that year.

Devoted SA's picture
Offline
Joined: 2006-03-28

Starka wrote:
It's obvious that you've never seen them wash those dirt water dog carts out before the start of the day.
There's not an intelligent person alive who doesn't want out of New York at the end of that year.

It's obvious that YOU, don't know what you are talking about. Time to take your medication and watch Jeopardy old man.

Starka's picture
Offline
Joined: 2004-11-30

Devoted SA wrote:Starka wrote:
It's obvious that you've never seen them wash those dirt water dog carts out before the start of the day.
There's not an intelligent person alive who doesn't want out of New York at the end of that year.

It's obvious that YOU, don't know what you are talking about. Time to take your medication and watch Jeopardy old man.

On the contrary.  I know far too well of that subject.
 

hubbabubba's picture
Offline
Joined: 2006-08-03

I wouldn't say I wish to live in NY for a year.  If I did, I would most certainly take advantage of the many things to do there, especially the restaurants.  I'd much rather spend my time in Paris though.
 
See, you can have a civilized discussion if you don't resort to name calling and act as a human spell check.

hubbabubba's picture
Offline
Joined: 2006-08-03

by the way newbie, if you trade options, you may want to pick up a book for some light reading called "Fischer Black and the Revolutionary Idea of Finance" by Perry Mehrling.  Its a biography of, you guessed it, Fischer Black of the Black-Scholes option pricing model.
If you go to Wikipedia.com you can find the formula.  Just plug in the numbers and off you go.

Devoted SA's picture
Offline
Joined: 2006-03-28

Starka wrote:Devoted SA wrote:Starka wrote:
It's obvious that you've never seen them wash those dirt water dog carts out before the start of the day.
There's not an intelligent person alive who doesn't want out of New York at the end of that year.

It's obvious that YOU, don't know what you are talking about. Time to take your medication and watch Jeopardy old man.

On the contrary.  I know far too well of that subject.
 

Accck - I apologize.
Quoted wrong quote. I wasn't intending that jab in your direction. That was directed at NASD Newbie.

Geez's picture
Offline
Joined: 2009-04-10

Medallion signature guarantees client must be present and present driver licenseand apply to certificate

Sam Houston's picture
Offline
Joined: 2008-12-01

Geez wrote:Medallion signature guarantees client must be present and present driver licenseand apply to certificate
 
He is probably not still looking for an answer 2 1/2 years later.

Indyone's picture
Offline
Joined: 2005-05-31

...how far down to you have to dig to find that old sh*t...

Please or Register to post comments.

Industry Newsletters
Investment Category Sponsor Links

 

Careers Category Sponsor Links

Sponsored Introduction Continue on to (or wait seconds) ×