Issuers of securities and transfer agents rely upon the signature guarantee process for the transfer of securities. This process makes the transfer agent liable for improper securities registration.
STAMP (Securities Transfer Agents Medallion Program) and SEMP (Stock Exchange Medallion Program) Surety Bonds are signature guarantee bonds that protect an investor, an issuer of securities, or transfer agent against fraud.
A STAMP bond is used by all signature guarantors. A SEMP bond is used by members of a particular stock exchange.
SEC Rule17 Ad-15 requires that transfer agents adopt an equitable methodology for acceptance of signature guarantees from eligible guarantor institutions.