100+ Free IMC Practice Questions
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Using the dividend discount (Gordon growth) model, a share expected to pay a GBP 3 dividend next year, growing at 2% with a required return of 8%, is valued at:
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Key Facts: IMC Exam
2 units
Unit 1 and Unit 2
CFA UK IMC Test Specification
85 Qs
Unit 1 in 1h40m
CFA UK IMC Test Specification
105 Qs
Unit 2 in 2h20m
CFA UK IMC Test Specification
65-75%
Unit 1 Pass Mark
Kaplan / CFA UK
60-70%
Unit 2 Pass Mark
Kaplan / CFA UK
240+ hrs
Suggested Study Time
CFA UK
The IMC (CISI Certificate in Investment Management, delivered with CFA UK) is an FCA-benchmarked Level 4 qualification taken as two on-demand, computer-based MCQ units. Unit 1 (The Investment Environment) has 85 questions in 1 hour 40 minutes and covers financial markets, ethics, UK regulation, client advice and UK tax. Unit 2 (Investment Practice) has 105 questions (multiple choice, item sets and gap-fill) in 2 hours 20 minutes and covers economics, accounting, quantitative methods, asset classes and portfolio management. Unit 1 pass marks are typically 65-75% and Unit 2 typically 60-70%, set by item difficulty, with no section hurdles. CFA UK suggests around 100 hours for Unit 1 and 140 hours for Unit 2.
Sample IMC Practice Questions
Try these sample questions to test your IMC exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1On the IMC, which UK regulator is responsible for the conduct of business and consumer protection across retail and wholesale financial markets?
2Under the FCA's Principles for Businesses, which Principle requires a firm to conduct its business with integrity?
3The FCA's Consumer Duty introduces a Consumer Principle. What does it require firms to deliver?
4Which body is the competent authority for listing securities on a UK regulated market (the UK Listing Authority function)?
5Under UK anti-money-laundering rules, what does Customer Due Diligence (CDD) primarily require a firm to do?
6To whom must a firm submit a Suspicious Activity Report (SAR) when it suspects money laundering?
7Under the UK Senior Managers and Certification Regime (SM&CR), what is the main purpose of Statements of Responsibilities?
8Which UK scheme provides compensation to eligible claimants if an authorised investment firm is unable to meet claims against it?
9A retail client complains and is dissatisfied with the firm's final response. Which body can the client take the complaint to free of charge?
10Under MiFID-derived UK rules, into which broad category would a large authorised investment bank typically be classified for conduct-of-business purposes?
About the IMC Exam
The IMC is the CISI Certificate in Investment Management, delivered jointly with CFA UK as an FCA-benchmarked, Level 4 entry qualification for investment management roles. It comprises two computer-based units: Unit 1 (The Investment Environment) covering markets, ethics, regulation, client advice and UK tax, and Unit 2 (Investment Practice) covering economics, accounting, quantitative methods, asset classes and portfolio management.
Questions
190 scored questions
Time Limit
Unit 1: 1 hour 40 minutes; Unit 2: 2 hours 20 minutes
Passing Score
Unit 1 typically 65-75% and Unit 2 typically 60-70%, with the exact pass mark set by item difficulty for each sitting
Exam Fee
Per-unit examination fees set by CISI/CFA UK; confirm current pricing on the official sites before booking (CISI / CFA UK)
IMC Exam Content Outline
Financial Markets and Institutions
Primary and secondary markets, exchanges, participants, clearing and settlement, central counterparties, the Bank of England and the UK financial system structure.
Ethics and Investment Professionalism
CFA Institute Code and Standards, integrity, conflicts of interest, market abuse, insider dealing, confidentiality and acting in clients' best interests.
The Regulatory Environment
FCA Principles and Handbook, SM&CR, Consumer Duty, best execution, client money (CASS), anti-money-laundering, FSCS and the Financial Ombudsman Service.
Legal Concepts and Client Advice
Client categorisation, suitability and appropriateness, trusts and fiduciary duties, discretionary versus advisory services and know-your-client.
Taxation in the UK
Income tax, capital gains tax, dividend taxation, stamp duty and SDRT, ISAs and other wrappers with current 2025/26 allowances.
Quantitative Methods
Time value of money, compounding and discounting, present value, perpetuities, expected return, correlation and statistical measures.
Economics
Microeconomics (elasticity, market structures) and macroeconomics (GDP, inflation, monetary and fiscal policy, balance of payments).
Accounting
Financial statements, IFRS framework, ratio analysis, EPS, ROE and the distinction between profit and cash flow.
Asset Classes
Equities, fixed income (gilts, corporate, index-linked, convertible and zero-coupon bonds, duration), derivatives and alternatives.
Portfolio Management and Performance Measurement
Modern portfolio theory, CAPM and beta, diversification, asset allocation, Sharpe ratio, alpha, time-weighted returns and behavioural finance.
How to Pass the IMC Exam
What You Need to Know
- Passing score: Unit 1 typically 65-75% and Unit 2 typically 60-70%, with the exact pass mark set by item difficulty for each sitting
- Exam length: 190 questions
- Time limit: Unit 1: 1 hour 40 minutes; Unit 2: 2 hours 20 minutes
- Exam fee: Per-unit examination fees set by CISI/CFA UK; confirm current pricing on the official sites before booking
Keys to Passing
- Complete 500+ practice questions
- Score 80%+ consistently before scheduling
- Focus on highest-weighted sections
- Use our AI tutor for tough concepts
IMC Study Tips from Top Performers
Frequently Asked Questions
How many questions are on the IMC exam?
The IMC has two units. Unit 1 (The Investment Environment) has 85 questions to be completed in 1 hour 40 minutes. Unit 2 (Investment Practice) has 105 questions, including multiple choice, item sets and gap-fill, to be completed in 2 hours 20 minutes.
What is the IMC pass mark?
Pass marks are set per sitting based on question difficulty. Unit 1 typically falls between 65% and 75% and Unit 2 between 60% and 70%. There are no section hurdles, so candidates need an overall pass score regardless of how marks are spread across topics.
Who awards the IMC and is it FCA recognised?
The IMC is awarded by the Chartered Institute for Securities & Investment (CISI) and delivered jointly with CFA UK. It is an FCA-benchmarked, Level 4 qualification recognised as appropriate for certain investment management roles in the UK.
How is the IMC exam taken?
Both units are computer-based and available on demand. Candidates can sit them under remote invigilation or at a test centre, scheduling each unit when they are ready rather than on fixed dates.
How long does it take to study for the IMC?
CFA UK suggests around 100 hours of study for Unit 1 and 140 hours for Unit 2, roughly 240 or more hours in total. Most candidates prepare over three to six months alongside work.
What topics does the IMC cover?
Unit 1 covers financial markets, ethics and professionalism, the UK regulatory environment, legal concepts and client advice, and UK tax. Unit 2 covers economics, accounting, quantitative methods, asset classes (equities, bonds, derivatives, alternatives) and portfolio management and performance measurement.
Do I need both units to get the IMC?
Yes. To achieve the full IMC qualification you must pass both Unit 1 and Unit 2. The units can be taken in either order, and each is examined and passed independently.