Hargreaves Lansdown has dropped its platform fee on the Woodford Equity Income Fund while the fund's dealing is suspended, effective immediately.
The firm said it was putting "pressure" on Woodford Investment Management to do the same, adding it was in contact with the firm and its platform investors.
It follows reports that St. James's Place has dropped Woodford Investment Management and replaced it with RWC Partners and Columbia Threadneedle for the management of its suite of funds.
Hargreaves Lansdown shares are down by 5.47% at time of writing (5 June, 5:00 p.m.).
Emma Wall, head of investment analysis at Hargreaves Lansdown, commented: "We have taken the decision to waive the platform fee on the Woodford Equity Income fund while dealing is suspended, effective immediately.
"We do not think it is fair to charge our clients a fee while they cannot trade in the fund. This is a frustrating and difficult time for clients and we are doing what we can to support them.
"We have been in communication with Woodford Investment Management to explain why we think this is the right thing to do and have put pressure on them to do the same."
In a further statement, CIO Lee Gardhouse said: "We've been speaking to Woodford for some time about the number of unquoted and hard-to-trade companies in his portfolio. We have encouraged him to address these issues, and he made a commitment to reduce this part of the portfolio in March. Now, he has the time to do this without also having to manage fund flows.
"Woodford Investment Management has not gone under. This suspension of trading gives Woodford some breathing room to get his fund into the shape he wants. And furthermore your assets are held safely by an independent company called Northern Trust, a financial services firm with one of the highest credit ratings. This is standard practice for fund management to reduce risk to investors.