WASHINGTON The Securities and Exchange Commission is planning an examination of small and medium-size brokerage firms, said Chairman Arthur Levitt.

Mr. Levitt told the House Telecommanications and Finance Subcommittee that the SEC would work with the Nadonal Association of Securities Dealers, the New York Stock Exchange, and the North American Securities Administrators Association in doing the examination sweep.

The SEC chairman also said that brokers who have been barred from the securities industry can expect that attempts at reentry will be extremely difftcult.

The SEC recently finished an examination sweep of large securities firms that resulted in a number of enforcement proceedings, although problems in the industry were not considered widespread.

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