Investopedia defines a signature guarantee as “a form of authentication issued by a bank or other financial institution that verifies the legitimacy of a signature and the signatory’s overall request. This type of guarantee is often used in situations where financial instruments are being transferred. In most cases, the guarantor accepts all consequences in the event that the signature is fraudulent.”
What Do You Need To Know About the TFS Guarantee Program?
—TFS will signaturee guarantee (SG) an original document for our clients or pending clients only providing this transaction is for TFS related business. Unfortunately, we cannot SG a request for a client or pending client for a third party.
—We cannot SG a fax or scan. Only original signatures can be guaranteed. Even if the vender is stating they will accept a faxed or scanned signature our bond does not permit us to make this accommodation.
—Our bond limit is $250,000 per transaction. Requests over that amount cannot be honored. For example, John Smith is transferring three accounts into his new brokerage IRA. Each of those three transfers is considered a separate event so the total dollar amount can be over $250,000. However, the combined dollar amount cannot be over $500,000 with no single transfer over $250,000.
—If a SG request is being sent to home office as part of pending business, a copy of the client’s valid driver’s license must be submitted as well. There are no exceptions. If the request is for an existing client, then a copy of the client’s driver’s license is not necessary.
—A SG request must also include Request for Signature Guarantee form. This form is required to be signed by the representative and client.
—TFS home office will not determine if a SG is necessary for a piece of business that has been received by home office. That is the responsibility of the representative and client. If you are unsure a transaction you are processing for a client requires a SG, please contact your manager, OSJ or the vender directly.
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