£450 to certify the signature on a document is mine!
Discussion
Yes, that's right £450 !!
I have some shares in a company that are traded on the NYC and I am transferring a portion of the ownership to my wife. In order to do so, my signature on the transfer form is required to be certified....nothing unusual about that. However, the share administrator will only accept certification from a member of what is called the Medallion Signature Guarantee Program. As far as the UK is concerned, I have found out that there used to be many organisations that were members of the Program but now there are very few of them: not surprising given the price of using their services. It seems a heck of a lot of money to certify that the signature on a document is mine. By comparison, the Post Office service for certifying copies of documents is £12.50 for three documents.
I suppose the Program members' argument will be that there is potentially a lot of value at stake that they are in part guaranteeing.
Apparently, this Program is common practice in the USA.
Anyone else come across the MSGP?
R.
I have some shares in a company that are traded on the NYC and I am transferring a portion of the ownership to my wife. In order to do so, my signature on the transfer form is required to be certified....nothing unusual about that. However, the share administrator will only accept certification from a member of what is called the Medallion Signature Guarantee Program. As far as the UK is concerned, I have found out that there used to be many organisations that were members of the Program but now there are very few of them: not surprising given the price of using their services. It seems a heck of a lot of money to certify that the signature on a document is mine. By comparison, the Post Office service for certifying copies of documents is £12.50 for three documents.
I suppose the Program members' argument will be that there is potentially a lot of value at stake that they are in part guaranteeing.
Apparently, this Program is common practice in the USA.
Anyone else come across the MSGP?
R.
JulianPH said:
I've never heard of it, and I frequently certify documents, signatures, passport photos, etc.
Very much a US/Canada thing.
Yes, but I think the difference is that you are certifying that the item is a COPY of a document, whereas the MSGP is certifying that my signature on an ORIGINAL document is genuinely mine.Very much a US/Canada thing.
R.
Fat Wolfie said:
Is it possible to get it signed in the States where if it’s more common it might be loads cheaper?
Add a few £00 and combine it with a few days in the Big Apple ?
It must be possible but I have not investigated the fee...may be a lot less than the UK because it is a more common procedure there, perhaps.Add a few £00 and combine it with a few days in the Big Apple ?
Funnily enough, I'm off to NY but not until the new UK income tax year... if you get my drift.
R.
The Leaper said:
JulianPH said:
I've never heard of it, and I frequently certify documents, signatures, passport photos, etc.
Very much a US/Canada thing.
Yes, but I think the difference is that you are certifying that the item is a COPY of a document, whereas the MSGP is certifying that my signature on an ORIGINAL document is genuinely mine.Very much a US/Canada thing.
R.
Do you hold the shares through a US broker?
JulianPH said:
I do both Roger, and had never heard of them!
Do you hold the shares through a US broker?
Yes, Equiniti USA are the share administrator.Do you hold the shares through a US broker?
I think I may have missed a "trick". The shares are held by Equiniti USA , but they have a UK operation and the shares are traded on the LSE as well as NYSE. If I want to make a similar transfer in future I'll look into this and see if I can do the transfer with Equiniti locally.
R.
Deesee said:
Wow, I do that for free for my clients.. £450 thats extreme.
Yes, but I bet not as a member of the MSGP. I suspect that you are willing to certify in another capacity. In the case of the transfer I am processing, it is clear that it has to be certified by a member of the MSGP and no other.I did research UK organisations in the Program and their fees and they all were about the same
R.
"To provide the Medallion Guarantee stamp only we charge £270 including VAT for UK residents whose identity is easily verfiable."
https://medallionguarantee.co.uk/faq/
https://medallionguarantee.co.uk/faq/
The Leaper said:
Deesee said:
Wow, I do that for free for my clients.. £450 thats extreme.
Yes, but I bet not as a member of the MSGP. I suspect that you are willing to certify in another capacity. In the case of the transfer I am processing, it is clear that it has to be certified by a member of the MSGP and no other.I did research UK organisations in the Program and their fees and they all were about the same
R.
Whats the value of the holding, why not just sell and buy back in an ETF (or even in an ISA/pension if your UK based)? Ive got an Equanti investment account there not a lot you can't buy in that.
rockin said:
"To provide the Medallion Guarantee stamp only we charge £270 including VAT for UK residents whose identity is easily verfiable."
https://medallionguarantee.co.uk/faq/
Yes, but there's other documentation required by the organisation I'm using that they require ahead of applying the MSGP stamp and the fee for that is included in the £450 I stated.https://medallionguarantee.co.uk/faq/
R.
Deesee said:
Whats the value of the holding, why not just sell and buy back in an ETF (or even in an ISA/pension if your UK based)? Ive got an Equanti investment account there not a lot you can't buy in that.
OK to do exactly what you suggest BUT this will incur UK CGT because an actual sale is involved..The purpose of the transfer (not a sale) is enable my wife to sell some of these shares in her own right and she can have the benefit of the CGT allowance too. Thus between us we can both effect a sale and both get the allowance each tax yearR.
The Leaper said:
Deesee said:
Whats the value of the holding, why not just sell and buy back in an ETF (or even in an ISA/pension if your UK based)? Ive got an Equanti investment account there not a lot you can't buy in that.
OK to do exactly what you suggest BUT this will incur UK CGT because an actual sale is involved..The purpose of the transfer (not a sale) is enable my wife to sell some of these shares in her own right and she can have the benefit of the CGT allowance too. Thus between us we can both effect a sale and both get the allowance each tax yearR.
Deesee said:
So you want a back to back (tax year) transfer and partial transfer to the wife without the wife having a current holding?
I want to transfer a portion of the shareholding this current tax year so she can then sell part of that shareholding in her own right this current tax year. In subsequent tax years, if we wish, we will both be able to sell part of our own shareholding. The intention is that sales, if any, will produce gains below the CGT allowance each tax year.R.
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