Transcription factor that can both act as an activator or a repressor depending on the context. Plays a central role in BMP signaling and olfactory neurogenesis. Associates with SMADs in response to BMP2 leading to activate transcription of BMP target genes. Acts as a transcriptional repressor via its interaction with EBF1, a transcription factor involved in terminal olfactory receptor neurons differentiation; this interaction preventing EBF1 to bind DNA and activate olfactory-specific genes. Involved in olfactory neurogenesis by participating in a developmental switch that regulates the transition from differentiation to maturation in olfactory receptor neurons. Controls proliferation and differentiation of neural precursors in cerebellar vermis formation. Homodimer (By similarity). Interacts with SMAD1 and SMAD4. Interacts with EBF1 (By similarity). Interacts with PARP1. Interacts with CEP290 (By similarity). Within the cerebellum, Zfp423 is expressed in both ventricular and external germinal zones. Transiently expressed in newly differentiating olfactory-receptor neurons. During embryogenesis, it is highly expressed at the dorsal neuroepithelium flanking the roof plate. Uses different DNA- and protein-binding zinc fingers to regulate the distinct BMP-Smad and Olf signaling pathways. C2H2-type zinc fingers 14-19 mediate the interaction with SMAD1 and SMAD4, while zinc fingers 28-30 mediate the interaction with EBF1. zinc fingers 2-8 bind the 5'-CCGCCC-3' DNA sequence in concert with EBF1, while zinc fingers 9-13 bind BMP target gene promoters in concert with SMADs (By similarity). Mice are runted and ataxic, the cerebellum is underdeveloped, and the vermis is severely reduced, resulting in diminished proliferation by granule cell precursors in the external germinal layer, especially near the midline, and abnormal differentiation and migration of ventricular zone-derived neurons and Bergmann glia. In the remaining cerebellar structures, the Purkinje cells are poorly developed and mislocalized. Znf423 gene is a frequent target of retroviral integration in murine B-cell lymphomas. Belongs to the krueppel C2H2-type zinc-finger protein family. Chimeric cDNA.