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How to Setup Security Manager to Only Grant Up To Their Permissions

Question asked by Jeff C on May 8, 2015
I've got two types of users: managers and reps.  I've setup a role for managers.  How do I set it up so any user in the managers role can create new users but they can't grant those users more permissions than the manager has?  Or in order to create a new user does the user account have to be Admin type instead of regular user in which case the Manager with an admin user account will have full access?