The Government has appointed consultancy B&W Deloitte to conduct independent research into what level the price cap should be for the Sandler suite of products.
Caroline Barr, who is currently head of benefit reform at the Treasury but is becoming head of fund management after Easter, revealed the move in a debate on the Sandler proposals at the ABI's annual conference.
The consultancy will have 10 weeks to conduct its comparative study of how different price-cap models would work.
It is aiming to come up with a model which would indicate to what extent deeper penetration into the target market would be achieved if the price cap was raised.
It is only working on the price cap and will not deal with any other aspects of product design or consider if the Sandler suite should be extended to other products.
The B&W retail financial services team is well regarded in the industry and industry sources say it is keen to come up with a workable solution if for no other reason than most of its business comes from financial services firms.
The Treasury has not said if it will publish the results.
Aegon corporate development director Laurie Edmans says: “When I heard that B&W got the contract from the Treasury, I thought, we are in with fighting chance on this.”