Securities Transfer Agents Medallion Program: Comprehensive Guide
The Securities Transfer Agents Medallion Program (STAMP) is a trusted verification system ensuring the authenticity of individual signatures on securities requiring transfers.
Understanding the Securities Transfer Agents Medallion Program (STAMP)
The Securities Transfer Agents Medallion Program, commonly known as STAMP, serves as a critical verification framework utilized by various financial institutions to authenticate signatures on physical securities certificates that require transfer. This program is one of three primary signature guarantee systems, alongside the Stock Exchanges Medallion Program (SEMP) and the New York Stock Exchange Medallion Signature Program (MSP). Operated as a nonprofit organization in partnership with Kemark Financial Service, STAMP is officially endorsed by the Securities Transfer Association to provide reliable signature guarantee services.
How the Securities Transfer Agents Medallion Program Works
According to regulations set forth by the Securities and Exchange Commission (SEC), any signature on a physical security certificate must be verified before a transfer agent processes the transfer. Specifically, SEC Rule 17Ad-15 mandates that transfer agents ensure fair treatment among financial institutions providing signature guarantees, enhance the efficiency of securities transfers, and minimize risks linked to guarantors failing to fulfill their obligations.
Members of STAMP—including commercial banks, credit unions, savings banks, and broker-dealers—are required to possess specialized Medallion imprinting tools and maintain surety bond coverage to offer this service. The Medallion stamp on a certificate signals to transfer agents that the signature has been verified by a reputable financial institution familiar with the customer. Transfer agents will reject certificates lacking this signature guarantee to avoid potential losses or liabilities from forged signatures. Typically, guarantors provide this imprint service free of charge as a value-added benefit within their banking or brokerage relationships.
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