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We don't have a Groups option but we do have Membership. One of the options when viewing a Membership Option is Level Security Options. The two options are typically Public Can Apply and Member Can Change To:
Meaning that for each level, if allowed, a member who belongs to that level can be allowed to change their level to something else or not. If they can't change themselves, an admin can always go in and do it.
For me this is a set of options that appear as check boxes to the right of the Member Level Information.
Not sure if that helps but maybe you'll be able to find something similar.