It is unlawful for any person who receives any consideration from another person primarily for advising the other person as to the value of securities or their purchase or sale, whether through the issuance of analyses or reports or otherwise:

1. (1) to employ any device, scheme, or artifice to defraud the other person;
2. (2) to engage in any act, practice, or course of business which would operate as a fraud or deceit upon the other person;
3. (3) acting as principal for his own account, knowingly to sell any security to or purchase any security from a client, or acting as broker for a person other than such client, knowingly to effect any sale or purchase of any security for the account of such client, without disclosing to such client in writing before the completion of such transaction the capacity in which he is acting and obtaining the consent of the client to such transaction. The prohibitions of this subparagraph shall not apply to any transaction with a customer of a broker-dealer if such broker-dealer is not acting as an investment adviser in relation to such transaction;
4. (4) to engage in dishonest or unethical practices as the commissioner may define by rule;

5. (5) The provisions of items (3) and (4) of this section do not apply to federal covered advisers.

   The commissioner may by rule or order adopt exemptions from item (3) of this section where such exemptions are consistent with the public interest and within the purposes fairly intended by the policy and provisions of this chapter.