After a lot of research and experimentation, i have a solution that works with reverse proxy and FMS 16.
This solution worked in my circumstances and thought of sharing it for the benefit of others and is not a fix. I have not raised this issue with FM Inc Support.
So, this is how it worked for me.
Install FM Server and web on a single server (mine originally was a multi-machine deployment) to support web direct
Reverse proxy to point to the port 80 of the machine
Do not have SSL certificate installed on the machine as this can cause "multiple" redirects problem on browser and your App would never load