How the CFA IMC exams work: Unit 1 and Unit 2 explained

The CFA IMC is built around two exams: Unit 1, The Investment Environment, and Unit 2, Investment Practice. You need both units to complete the qualification unless an exemption applies.

The two units are connected, but they test different things. Unit 1 gives you the professional and regulatory environment around investment work. Unit 2 tests the technical investment tools and products used in practice.

Who this article is for

This article is for learners who know they want to take the IMC but are not yet clear on the route. It will help if you are choosing which unit to study first, estimating the work involved or trying to understand why the two exams feel different.

It is also useful if your employer has asked you to take the IMC and you need a quick overview before opening the syllabus. The aim here is not to replace the official syllabus. It is to give you a simple structure so the official material feels easier to navigate.

What you need to know

CFA UK's qualification specification says the IMC is assessed through online testing using standard multiple choice, item set and gap-fill style questions. Exams are delivered through computer-based testing at Pearson VUE test centres.

For the current V.23 cycle, CFA UK's public IMC page gives Unit 1 as 85 questions with 1 hour 40 minutes allowed. It gives Unit 2 as 105 questions with 2 hours 20 minutes allowed. CFA UK also lists typical study time as 100 hours for Unit 1 and 140 hours for Unit 2.

Unit 1 is called The Investment Environment. The current V.23 syllabus is tested from 1 December 2025. It covers financial markets and institutions, ethics and investment professionalism, regulation, legal concepts, client advice and UK taxation.

Unit 2 is called Investment Practice. The published V.23 syllabus covers quantitative methods, economics, accounting, asset classes, portfolio management, investment products and performance measurement.

Key points

• The IMC is not one exam. It is a two-unit qualification.

• Unit 1 is shorter by question count and stated study hours, but it can feel dense because of regulation, ethics, legal concepts, client rules and tax.

• Unit 2 has more questions, more stated study hours and broader technical coverage across investment practice.

• Both units can use standard multiple choice, item sets and gap-fill questions.

• The syllabus version matters. CFA UK says the syllabus cycle runs from 1 December to 30 November.

• Mock exams are useful, but CFA UK's mock materials warn candidates not to treat a mock as the primary source of learning.

How to prepare, decide or use the guidance

The exam format changes how you practise. Standard multiple choice checks individual points. Item sets check whether you keep context across several questions. Gap-fill questions remove the comfort of recognising the answer. A good practice week includes more than one question type.

Most learners should start by reading the current CFA UK syllabus for the unit they plan to sit first. Then build a topic checklist from the official learning outcomes. This matters because the exam tests syllabus outcomes, not just general investment knowledge.

If you are choosing an order, start with your immediate need. Unit 1 may suit you first if you want to understand the UK regulatory and professional environment. Unit 2 may be tempting if you already have markets or accounting knowledge, but it is broader and usually benefits from a slower build.

Whichever unit you choose, use active recall. Read a topic, summarise the rule or concept in your own words, then answer questions without notes. Review mistakes by cause. Was it a definition gap, a calculation error, a misread scenario or a weak link between the concept and the exam wording?

Plan enough time for mixed practice before the exam. Topic-by-topic practice is useful while learning. Mixed practice is useful later because the exam will not tell you which chapter a question belongs to.

Do not read too much into question count alone. Unit 1 has fewer questions but more rule-heavy material. Unit 2 has more questions and broader technical coverage. Your plan should reflect the kind of mistakes you are making, not just the number of pages left.

How Qualifico helps

Qualifico can help you break IMC preparation into smaller topic areas. That is useful because the two units are broad in different ways. Unit 1 needs steady recall of rules and professional principles. Unit 2 needs repeated practice across calculations, product features and portfolio concepts.

Using practice data also helps you avoid the common mistake of studying what feels familiar. If your weaker areas are regulation, tax, accounting or fixed income, the platform can help you make those areas visible so you can deal with them earlier.

For what each unit actually asks of you, the IMC resource hub has the guides for both.