cjs238

As far as I understand current recommendations in the Asset Manager Code of Professional Conduct (2nd edition, 2010) recommend in Appendix F.4.d: "At a minimum, Managers should provide clients with gross- and net-of-fees returns and disclose any unusual expenses." Generally the AMCPC requires fairly extensive disclosures, based on the principle of full and fair disclosure. This same principle is encouraged in the CFA Standards of Professional Conduct, and the use of GIPS is strongly encouraged.
GIPS (2010 edition) 4.A.5 and 4.A.6 state that firms claiming compliance with GIPS must disclose any other fees regardless of net or gross of fees returns are reported. Specifically in 4.A.5: "When presenting GROSS-OF-FEES returns, FIRMS MUST disclose if any other fees are deducted in addition to the TRADING EXPENSES."
However, there is a recommendation in GIPS 5.B.1 that does recommend gross-of-fee returns, but that does not reduce the disclosure requirement outlined in 4.A.5.
Usually, the CFA Standards of Professional Conduct recommend the use of the most strict law, regulation or standard. In this case disclosure of gross-of-fees plus any other fees charged to the investor. There is no issue from different standards, just use the stricter one.

I don't see anything in terms of CFA Institute recommendations that suggests to limit performance reporting exclusively to gross-of-fees returns.

From what I understand the firm you are looking at does not claim to adhere toe the AMCPC or to claim GIPS compliance. The person giving you the misleading information may at worst violate the CFA Standards of Professional Conduct III (D).