Zinc-finger transcriptional repressor. In larval brain, involved in the maintenance of cell fate of intermediate neural progenitors (INPs) that derive from type II neuroblasts. Restricts INP developmental potential and dedifferentiation by interacting with HDAC3 and the chromatin remodeling Brahma-associated protein (BAP) complex. Restricts INP proliferation by regulating neuroblast specific factors such as prospero, pnt and grh, and by antagonizing the function of self-renewal factors, such as klu, dpn and E(spl)mgamma-HLH. In the optic lobe, essential for coordinating the innervation/ targeting of the L3 and R8 axons to the M3 layer of the medulla. Early in medulla development, functions in parallel to CadN and Sema1a pathways to promote targeting of the L3 growth cones to the proximal domain of the outer medulla possibly by controlling the expression of various cell surface genes such as dpr1 and dpr17 which function in L3 growth cone targeting. Then once L3 growth cones segregate into the developing M3 layer, it activates the expression of netrins NetA and NetB which act locally to promote the attachment of R8 growth cones within the M3 layer