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: We don'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 name(s) of the American Funds account owner(s), then the bank account owner’s/co-owner’s signature(s) must be guaranteed.
A completed Add/Update Bank Information form must be completed and returned by mail.
Withdrawal options
A signature guarantee from the American Funds 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 distribution by check payable to a third party
- The request is made for a distribution over $125,000
- The request is for gifting shares to another account
- The request involves an IRA divorce transfer
Registration changes
In these cases where a change of registration is requested, we need a signature guarantee 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 situation.
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The guidelines and procedures provided in the Account Resource Center may not apply to networked accounts or accounts not directly held by American Funds. The guidelines and procedures provided also apply only to those retirement accounts or Coverdell ESAs invested in American Funds with Capital Bank and Trust Company (CB&T) as custodian. The guidelines and procedures provided in the Account Resource Center do not apply to plans held in our retirement plan solutions — PlanPremier, PlanPremier-TPA or RecordkeeperDirect. Information on the Account Resource Center may change periodically, and previously printed information may not be current. Please refer to capitalgroup.com for the most current information available.
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