Medallion GuaranteesTransferring shares or funds internationally - including the USA & Canada
Medallion Guarantees are a peculiarity of United States, which unfortunately now also applies in Canada.
The Medallion Guarantee itself is just a green ink bar code which considering all the problems concerning the documentation to obtain the same, is a bit of a let down if and when you actually see it on the document to which it is affixed.
There are several levels of Medallion Guarantee the most usual ones being up to US$250,000 and then US$500,000. Higher levels are available, but are more difficult to obtain. We will be pleased to advise you in this regard.
The Medallion Guarantee was introduced to combat rampant fraud in the share sale and transfer market by making banks and other suppliers of the Medallion Guarantee responsible to pay damages if it turns out that the person / seller / transferor of the shares does not have the right, title or interest to actually sell or transfer the shares, hence the detailed requirements and documentation needed to obtain a Medallion Guarantee because of the risks involved if a fraud is later uncovered.
It is quite a nuisance to obtain the Medallion Guarantee as the Americans think that anyone in the world can get a Medallion Guarantee from any bank, when in fact outside the USA and Canada almost no-on has heard of a Medallion Guarantee, and even if they have they will not supply the same to the documents produced to the bank by the man in the street.
As a result, only 3 organisations that know of, have the ability outside the USA and Canada to provide the Medallion Guarantee, and we are able to provide this service.
We set out in our articles about Canada and the United States the details and documentation required to obtain a Medallion Guarantee, and so please look at those articles for more precise details, but in summary the requirements to obtain a Medallion Guarantee are (and these change slightly from case to case and depending upon which jurisdiction the Executors / Administrators / Personal Representatives / Transferor / Seller resides:
1) The original share certificate
If the shares are what is known as “book entry” shares, i.e. they are held in electronic form, then a dividend statement will be sufficient for our purposes, or a “Book Entry Advice” / “Direct Registration Advice” (sometimes simply called a “DRS Statement”).
If the shares are in certificated form, they will have to be converted into book entry (electronic) form before they can be sold. This should be effected by Computershare / CST or other share registrar when we send them all the documents to have the shares transferred into the names of the Executors prior to sale.
2) Original copy death certificate
3) Sealed copy of the Grant of Probate
If the deceased died domiciled in Continental Europe or in a Country where there are forced heirship laws, then an original copy of the Notarial Act(or equivalent and an English Translation (translated by a court appointed translator) will be required.
4) Copy of the Will (if any);
5) Copy of the Passport of each Executor
If none of these documents are available then we will prepare a Certificate of Identity for use by the Executor / Administrator. We obviously will need a copy of the Grant of Probate and a copy of the utility bill that is going to be used, together with any other evidence supporting the identity of the person concerned such as a Driving Licence in order to draft the Certificate of Identity. We will need two (2) passport size and type photos for this Certificate).
6) Copy utility bill
7) Original Transfer Request Form / Stock Power / Securities Transfer Form
Please bear in mind that usually we can have the documents returned with the Medallion Guarantee affixed in a few days (usually less than a week) from the time that we receive all the necessary documents, and payment.