Quality of Advice Review chairwoman Michelle Levy will propose a radical overhaul of the complex laws governing financial advice, scrapping reams of consumer protection and disclosure regulations and making it easier for banks and super funds to provide cheap forms of advice.

A draft consultation paper, expected to be released by Treasury on Monday and seen by The Australian Financial Review, backs longstanding concerns of business leaders that over-regulation has priced most Australians out of financial advice, just as millions of Baby Boomers approach retirement.