Signature guarantee
ARTICLE TAKEAWAYS
- What is a signature guarantee?
- When is a signature guarantee necessary?
What is a signature guarantee?
A signature guarantee is a stamp provided by an eligible guarantor certifying that at the time of the signing:
- The signature was genuine
- The appropriate person was signing
- The signer had the legal capacity to sign
By providing a signature guarantee, the guarantor institution provides authentication of the signature. The institution’s guarantee pledges the financial backing of the institution. Financial backing is important since, if the signature is forged or fraudulent, the guarantor institution may be held liable.
A medallion guarantee is also a signature guarantee but is insurance-backed and must contain a signature of an authorized representative of the guarantor institution.
Note: Capital Group doesn’t accept notarization from a notary public in lieu of a signature guarantee.
When is a signature guarantee necessary?*
Automated Clearing House (ACH) options
If a request is made to add a bank to an account for ACH options and the bank account registration does not include all of the names of the Capital Group account owners, then the bank account owner’s/co-owner’s signature must be guaranteed.
An Add/Update Bank Information form must be completed and returned by mail.
Withdrawal options
A signature guarantee from the Capital Group account owner is required if a withdrawal is requested and:
- Your client wants to sell shares by phone or online within 10 business days after updating the bank information
- Your client requests a withdrawal by check payable to a third party
- The request is made for a withdrawal over $250,000
- The request is for gifting shares to another account
- The request involves an IRA divorce transfer
Registration changes
In cases where a change of registration is requested, a signature guarantee is required when:
- Adding an account holder to an account
- Moving from a trust to a joint or individual account
- Changing trustees
- Changing owners on a CollegeAmerica® account
* This is not an all-inclusive list, and exceptions may apply. Contact us for specific requirements and forms needed based on your client’s situation.
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