Definition of Special Miscellaneous Account (SMA)

memorandum account of the funds in excess of the margin requirement. Such excess funds may arise from the proceeds of sales, appreciation of market values, dividends, or cash or securities put up in response to a margin call. An SMA is not under the jurisdiction of Regulation T of the Federal Reserve Board, as is the initial margin requirement, but this does not mean the customer is free to withdraw balances from it. The account is maintained essentially so that the broker can gauge how far the customer might be from a margin call. Any withdrawals require the broker's permission.