The look-through approach is a conflict of laws rule applied to the proprietary aspects of security transactions.
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.
This problem demonstrates that any attempt to apply the look-through approach under a fungible custody structure runs counter to the widespread conflict of laws principle that jurisdiction over proprietary aspects of dispositions of movable property should broadly be attributed to the jurisdiction where orders in respect of that property are capable of being enforced.
If an investor holds merely contractual rights against its intermediary for delivery of securities, it no longer seems accurate to refer to the lex rei sitae, which is a property law concept.
In January 2001, at the first Special Commission of the Hague Securities Convention, the look-through approach was resoundingly rejected by the 119 experts in attendance.