Issue with bluetooth low energy device

Hi,

I’ve currently installed the latest 16.04 build via apt-get on my raspberry pi 3, which is allowing me to use bluetooth on it via the integrated controller.
I’m not having any issues with Bluetooth Low Energy devices that don’t requiring pin-based pairing but with a device that requires pairing (PIN is generated on the device and presented in its display), I’m always getting a “Bluetooth: SMP security requested but not available” on the console - running the pairing process via bluetoothctl over SSH, and this error is showing on the raspberry’s screen, while running in non console mode (ie: without X). Tried it with kernel 4.1.19-v7+ and with 4.4.6-v7+, with Bluez 5.37 and 5.39. Using this process: https://wiki.gentoo.org/wiki/Bluetooth#BlueZ_5
Device works fine when paired on a Windows PC, Android 6.0 device (Nexus 5) or Windows Phone, but not here, neither on OS X in a Late 2013 macbook pro or on Linux running in that mac (I get the same SMP error in Linux on the mac).

Any ideas ?

Thanks,

Does this help?:

not really. works fine if I try to pair the pi that way with my Nexus, but not with the other device - they communicate, but I never see the PIN displaying on the other device or the pi requesting the pin from the other device. tried it also with the stable version of Ubuntu MATE (15.10), same results (in this case, using a CSR bluetooth dongle from adafruit, not the integrated chip).
The device works fine with the CSR dongle when the pi is running Windows IoT…