The Medallion Signature Guarantee: What Every Notary & Small Business Owner Should Know
When clients bring financial documents your way, you may sometimes hear the term “Medallion Signature Guarantee.” It sounds like something a notary would handle, but here’s the truth: notaries cannot provide this service.
Still, as trusted professionals, it’s important for us to understand what it is, how it works, and how to guide our clients to the right place.
What Is a Medallion Signature Guarantee (MSG)?
A Medallion Signature Guarantee (MSG) is a special type of certification used to authenticate signatures on financial documents, especially those involving the transfer of securities such as stocks, bonds, or mutual funds.
Unlike notarization, which verifies identity and willingness, a Medallion Guarantee adds an extra layer: the financial institution issuing the guarantee is assuming liability for the authenticity of the signature.
Learn more here: https://www.colonialstock.com/Medallion-Signature-Guarantee.htm
How Is It Different from Notarization?
This is where confusion happens. Many clients mistakenly ask a notary for a Medallion Signature Guarantee. While both processes deal with signature verification, they serve very different purposes:
Notarization confirms the signer’s identity and willingness to sign, following state notary laws.
Medallion Guarantee confirms not only identity but also that the signer has the legal authority to transfer or sell securities. It also financially protects the transaction against fraud.
In short: Notaries witness. Financial institutions guarantee. View sample document Merill Lynch Securities doc
Who Can Provide a Medallion Signature Guarantee?
Only institutions that belong to one of the Medallion Guarantee programs can provide this service. These typically include:
Banks
Credit unions
Brokerage firms
Not all branches or employees are authorized, so clients may need to contact their financial institution directly to confirm availability.
Check out Kemark Financial here: http://www.kemarkfinancial.com/index.html
Why Is It Important?
For financial institutions, the Medallion Guarantee is a critical fraud-prevention tool. By placing their “stamp” on a document, they are backing the transaction with their own liability. This protects both the institution and the investors.
For clients, it ensures that their transfer of securities will be processed smoothly and recognized as legitimate.
What Should Notaries & Small Business Owners Do?
Educate your clients. If someone asks for a Medallion Signature Guarantee, explain the difference and refer them to their bank or broker.
Avoid confusion. Make it clear that a notary seal cannot replace an MSG.
Stay professional. Guiding clients to the correct resource strengthens your reputation as a trusted advisor.
Final Thoughts
The Medallion Signature Guarantee may sound like another type of notarization, but it’s a different world altogether—one reserved for banks and financial institutions.
As notaries and small business owners, we don’t issue MSGs—but by understanding the process, we can better serve our clients, prevent costly mistakes, and continue to build credibility.
👉 Have you ever had a client confuse notarization with a Medallion Signature Guarantee? Share your experience in the comments!
Original publish date 7/13/2023 -Updated 9/02/2025
