Under the indirect holding system, securities are held through fungible accounts (omnibus accounts). There are severe conceptual, legal and practical difficulties with continuing to apply the look-through approach. ![]() The look-through approach has lost applicability due to the increasing complexity of cross-border securities transactions brought about by the introduction of an indirect holding system. Under such structures, the investor's interest will be recorded at each level and it is appropriate to treat the investor's interest as located at the place indicated under the traditional lex rei sitae test. The approach is feasible where registered securities are held entirely through non-fungible accounts, in which securities attributable to an intermediary's individual customers are separately identified and credited to separate designated accounts in the books of the intermediary. It is an application of the traditional lex rei sitae (where the property is situated) test. The look-through approach is a conflict of laws rule applied to the proprietary aspects of security transactions. ![]() JSTOR ( December 2009) ( Learn how and when to remove this template message).Unsourced material may be challenged and removed.įind sources: "Look-through approach" – news Please help improve this article by adding citations to reliable sources.
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