In the new version v4, Trusted Advisors will see only those folders they have been assigned to. For e.g. if they are assigned a level 2 folder, they will only see the level 2 folder and files within. They won't see the level 1 folder which contains the level 2 folder as was the case with the legacy version v3.
New Version v4.0
Let's say a Trusted Advisor is given permission to the level 2 folder 'Accounts' under 'Banking & Credit Solutions' (Figure 1), then the Trusted Advisor will only see 'Accounts' in his/her portal and not 'Banking & Credit solutions' (Figure 2). The same goes for deeper folder levels such as level 3 and further. This is done to make the permissions more secure and specific.
Figure 1: Setting folder permissions for Trusted Advisor
Figure 2: Permission to access only Level 2 folder
Legacy Version v3
In this version, the Trusted Advisor will see the Level 1 folder 'Banking & Credit solutions' as well in his/her portal.
Figure 3: Trusted Advisor can access Level 1 folder as well
Figure 4: Double click on Level 1 folder to access Level 2 folder