One of Australia's top business groups has called for regulators to pursue companies and directors for breaches of continuous disclosure laws rather than allowing securities class actions.

In a submission to the Australian Parliament's inquiry into class actions and litigation funding, the Australian Institute of Company Directors (AICD) urged Australia to follow the lead of Hong Kong, where continuous disclosure laws are not linked to a class action regime.

The directors' body cites data showing that in the first 14 years after Australia introduced class actions, eight securities class actions were filed. But over the next 14 years, 114 securities class actions were filed.